More on Booz Allen – don’t get drunk on hype
America’s oligarchy begins here, in this instance. The Carlyle Group is one of the families. They latch onto contractors to make a spin and a lot of money. In this instance, like many government contractors, they conceal information under the guise of national security. Their performance is linked to defense budgets and most important, who are the members of their corporate family and what are their political life cycles.
I truly believe and advocate that to qualify for government contracting, the corporation must be a proven commercially viable operation. If they have no commercial customers at = or > than 50% of the business, then they should not be doing business with the government.
BAH is a pig in a poke.
“Beyond the hype of Booz Allen's IPO
When any company files to go public the instinctive question is how much money are they going to raise and what will they spend it on.
When Booz Allen Hamilton filed a updated registration form for its IPO on Thursday, the news in the financial press focused on the estimated 241 percent return Booz Allen’s owners, the Carlyle Group, will make on their two-year-old investment. Booz Allen stock is expected to start trading on Wall Street on Nov. 16.
But of equal interest to me are the insights the filing with the Securities and Exchange Commission reveals about Booz Allen’s world view and the current state of the federal contracting market.
In the “Risk Factor” section of the filing, Booz Allen describes all the ways the company might fail and the challenges it faces in running its business. These include standard items such as government customers not getting enough funding to continue or start projects and the impact failed systems might have on revenue.
It also describes risks associated with working with subcontractors and the intense competition it faces from its peers.
Booz Allen warns that because so many of its contracts are classified, investors will have limited insights into portions of the business.”