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Question for Brokers. Would having a GSA Scedule contract be a good selling point for a company?

How interested are potential buyers in aquiring a business that has obtained a GSA Schedule Contract and holds a working relationship with Federal purchasers? I can see it both as an attractive offering and a pain depending on your perspective.

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Answers (2)
Aron Culver
BTI Group / Business Team
CA

Absolutely. However, just like any asset, tangible or intangible, it is only worth the income it produces. Furthermore, if there are multiple purchasers, not just one or a few, then value will hold strong as well since the threat of major revenue loss from one or a few sources is diminished.

Aug 11, 2009
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The BAF Group LLC
MD

It depends upon the business. Some are tremendous, because there are terrific opportunities to sell through the GSA. However, just listing is not the end. You can be listed and never sell a thing through the system. The company that will realize true benefit from being on the Schedule is one that is not only currently in good standing with GSA, but can prove that a fair amount of business has resulted from that source.

It is very much like the guy that comes to me and says he wants a bezillion dollars for his business, but there is no history; all he is giving me is a pro forma financial statement that says this business can make a ton of money if the Buyer follows the Seller's plan. But being in possession of a good strategy, and being able to follow through with that strategy are two, completely different issues.

So, holding "a working relationship with Federal purchasers" is great! But what does that translate to, in terms of dollars and cents. If the money is there in sifficient quantity, the pain of dealing with GSA is oh, so much easier to bear!

Jul 29, 2009

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