Issues to Consider when Buying A Government Contractor - Claims & Terminations
The government has the unique rights to change the scope and other terms of performance of a contract as well as terminate all or part of it in exchange for "making the contractor whole." The buyer needs to assess all existing claims, potential claims and termination settlements and estimate the likelihood of recovery. In our due diligence, we have found many circumstances of exaggerated assertions of potential recovery. We have also encountered the opposite circumstances where though the seller did not identify any potential claim and termination benefits, our close examination of the likelihood of certain recoveries provided a significant source of unexpected value to our buyer client that was later realized.
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To discuss your needs, contact Bill Lennett, Principal, at 1-925-362-0712 or email him at
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