External Restructuring

Many U.S. government contractor business units have been acquired through acquisition. These segments may be partially integrated into a common business model or, as a strategy, managed through a portfolio or holding company, often retaining legacy practices and business unit structure. As a result, many contractors operate under inconsistent and inefficient business operations; disparate systems, practices, policies, and procedures; and stand-alone “siloed” segments within the company. Consequently, fractured operations may not be prepared to go to market in a unified or competitive manner. Unfortunately, these factors increase risk and lower enterprise value.

Capital Edge is experienced in the development and execution of business strategy to align business units, internal functions, associated processes, and rate structures that improve integration, eliminate redundancies, increase competitive advantage, and provide flexibility for segment business models to realize favorable regulation specific to integration of an acquisition.

Capital Edge combines experience in consulting, public accounting, industry, and government to provide unmatched federal contracting compliance expertise for External Restructuring activities.  

Our consultants provide a wide variety of services, from strategic planning to advisory on key  External Restructuring activities, including:

• Defining timing, resources, impact on P&L, implementation challenges
• Developing communication plan and branding: internal, customer, shareholders
• Consolidating business unit structure: defense, non-Traditional, hybrid, shared services
• Redefining rate structure: allocation bases, CAS compliance, disclosure statements
• Maintaining adequate / approved business systems
• Designing plan and conversion/upgrade of ERP systems and data 
• Identifying cost accounting practice changes
• Updating forward pricing rates / TINA disclosures 
• Updating policies and procedures
• Training personnel
• Estimating contract claw-back on voluntary changes in the absence of external restructuring
• Developing a business case for an external restructuring proposal
• Establishing a target on savings to cost, e.g., 4:1
• Developing external restructuring proposal and bridge to FPRP