Government contracting M&A update

Read more about M&A trends and activity in this sector

Government contracting 1st half 2022 review

Download PDF

Sector highlights

Market Commentary

  • The federal market continues to be a hedge against broader economic market uncertainty and volatility due to its stable customer base, strong funding dynamics and clear revenue visibility characteristics.
  • While the broader S&P 500 dropped more than 20% in the first half of 2022, Government Services companies generated a 4.9% return. Similarly, S&P 500 valuations dropped from nearly 17.0x at the beginning of the year to 12.3x while Government Services IT valuations remained steady at ~12.0x EBITDA.
  • While down from the 2nd half of 2021, 1st half 2022 Government Services M&A deal volume remained strong with 71 deals, more than the first half of last year.
  • 1st half deal mix was a balance of Strategic, Platform and Bolt-On transactions with 5 notable new platforms and 3 platform exits.
  • New fundraising efforts by traditional government-focused private equity players validates their thesis about successfully buying, building and exiting while providing capital to drive future deals.

Government Services M&A Activity

Government Services Deals - by Buyer Type

Government Services Deals - by Seller Type

Government Services PE Platforms – by Vintage Year

We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below.

Download the document

Government contracting 1st half 2022 review

Download PDF

Related Content

Webcast Replay Webcast Upcoming Listen Now

Industrial markets

KPMG Corporate Finance LLC’s investment bankers have extensive Industrial Markets transaction and industry experience, which enables them to understand the industry- specific issues and challenges facing our clients.

Webcast Replay Webcast Upcoming Listen Now

Government Contracting M&A Industry Update 2nd Half 2022

Read more about M&A trends and activity in this sector

Webcast Replay Webcast Upcoming Listen Now

Insights

Learn about the latest trends in mergers and acquisitions with KPMG Corporate Finance LLC.

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement.

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline