Selling a Public Administration Business

Public Administration vendors usually trade on how dependable their contract cash flow is. Buyers will dig into re-compete timing, funding gates like annual appropriations or expiring grants, and whether set-aside eligibility changes after closing. For a quick starting point, use Rejigg’s free valuation calculator, then sanity-check it against your contract calendar and your invoice-to-cash history.

No. Brokers typically charge 5–10% of the sale price for a process you can run yourself with the right tools and buyer access. Rejigg is built for broker-free sales: buyers are pre-vetted, NDAs are signed digitally, and you can share contracts and diligence materials through a secure data room. Start with the preparation guide, then list once your contract story is clean.

Sometimes. SBA loans can work when revenue is stable, transferable, and well-documented, but lenders get cautious when novation timing is unclear, major re-competes are inside the next 6–12 months, or customer approvals could pause work. You can model payments and down payment scenarios with Rejigg’s SBA loan calculator and see whether cash flow can handle award slippage and slow pay.

Timing often comes down to contract mechanics. Novation, prime consent on subcontracts, and security re-approvals can add weeks or months even when the buyer and seller agree on price. Prep your contract summaries, approval map, and invoicing realities before you start heavy buyer calls. Rejigg keeps diligence in one data room and tracks closing conditions in a single workflow. See due diligence and closing.

An LOI is a short document that outlines the main terms before full diligence, like price, payment structure, exclusivity, and the target close date. In Public Administration deals, a strong LOI also spells out contract transfer steps, including novation, prime consents, and how working capital is handled when invoices lag. Rejigg’s negotiation guide covers what to include so diligence does not turn into a surprise renegotiation.

Working capital is what the business needs to operate day to day, including cash on hand, unpaid invoices owed to you, and bills you have to pay soon. In Public Administration, working capital is often driven by acceptance steps, retainage, and long payment cycles, plus staffing ramps before a notice to proceed. Buyers commonly ask you to leave a “normal” level in the business at closing. Your invoice-to-cash history is the best way to define “normal” for your contracts.

Earnouts tie part of the purchase price to future results. Buyers use them when re-competes, funding renewals, or set-aside constraints make future revenue hard to underwrite at closing. They can get complicated when award timing slips or agencies delay starts and acceptance, even if delivery is strong. If you agree to an earnout, define what counts as revenue, how delays are treated, and how disputes get resolved. Rejigg’s deal tracking helps you compare earnout and non-earnout offers side-by-side.

Start with the items a buyer cannot recreate quickly: contract summaries with option years and re-compete windows, novation and assignment flags, vehicle details and expirations, invoicing and acceptance steps, and security artifacts agencies have already accepted. Add org charts tied to named personnel requirements and any clearance or citizenship limits. Rejigg includes a built-in secure data room so you can share these in stages and avoid emailing sensitive contract files.

Confidentiality is touchy in government work because staff, primes, and agencies can overreact to rumors. Most sellers keep outreach tight, share details only with serious buyers, and require an NDA before releasing contract-level information. On Rejigg, buyers are pre-vetted, and NDAs are signed digitally before they see sensitive materials. You also control exactly who sees what, and when.

Yes, but expect deeper diligence on the prime relationship. Buyers will ask how tasks are awarded in practice, what drives workshare, and whether the prime can replace you after a change of control, even if the paperwork looks stable. Help them by documenting which revenue is prime-dependent, how long the relationship has held, and what keeps you on the short list. Clear documentation usually beats a polished pitch.

Change-of-control notice clauses usually require you to notify the agency or prime when ownership changes, and sometimes they require consent. The practical risk is coordination: who can invoice, who talks to the contracting officer, and how disputes get handled during the transition. Flag these contracts early and write a simple plan for notices, approvals, and interim operating steps. Buyers can live with paperwork when the timeline is predictable.

Concentration in Public Administration often shows up by agency program and funding source, not by how many “logos” you have. A single policy or budget change can hit multiple departments if they rely on the same appropriation or pass-through grant. Group revenue that way and explain what protects it, like a statutory mandate, sticky integrations, or repeated re-compete wins. If protection is thin, show a realistic path to diversify into adjacent agencies or new vehicles.

Transitions can run longer in the public sector because approvals and relationship handoffs move slowly. Buyers often want the seller involved through novation, key personnel substitutions, or an upcoming re-compete, especially if the founder is central to proposals or agency communication. A good transition plan names who owns delivery, who owns capture, and how customer communication will work. See transitioning after the sale.

Retrades tend to happen when procurement reality shows up late. Common examples are re-competes arriving sooner than expected, novation constraints, acceptance gates that delay billing, or security gaps that require rework. Lead with your contract calendar, approval map, and security summary early, then back it up with the source documents. Rejigg lets you stage data room access so buyers validate the big risks first, not after 60 days.

Acceptance is the formal sign-off that a deliverable, milestone, or service period meets contract requirements and can be invoiced. In Public Administration work, acceptance can involve documentation packets, security checks, and multiple stakeholder approvals, which can slow billing even when the work is done. Buyers care because acceptance drives cash timing and working capital needs. Track acceptance steps by contract and share typical timelines so buyers model cash correctly.

Usually yes, as long as you can describe the gaps clearly and show a plan with cost, timing, and ownership. Buyers get nervous when security is vague because agencies may require a fresh review after a control change, and that can delay go-live or renewals. Package the artifacts you already have from agency reviews and be direct about what is left. Rejigg’s data room is built for sharing sensitive security documentation with vetted buyers under NDA.

Taxes depend on how the deal is structured, what type of entity you have, and whether you are selling assets or equity. Buyers often prefer asset sales to reduce liability, but contract transfer and novation requirements can limit what is practical. Have your CPA model scenarios early so you understand the real after-tax outcome before you pick a buyer. If you are comparing offers, Rejigg’s deal comparison view helps you line up price, structure, and payment terms cleanly.

Serious buyers usually ask specific questions early, like your re-compete calendar, vehicles, novation steps, acceptance gates, and key personnel constraints. Those questions are a good signal they understand what it takes to close and operate the work. Rejigg helps by pre-vetting buyers and enabling direct messaging and calls, so you can test buyer fluency quickly. Start with finding your dream buyer.