Morrison & Foerster hosted its Annual Federal M&A Outlook for 2010 on Wednesday, October 14, in McLean, Virginia. Co-sponsored by the Washington Business Journal, the event was attended by close to 400 federal contracting executives and industry experts who gathered to hear leading dealmakers discuss the prospects for growth, investment, and M&A activity in the sector.

Quick Outlook Takeaways

*Federal M&A market not fully recovered, but should see a re-

acceleration in 2010

*Continued high valuations in the fields of cyber-security, health IT, intelligence, asymmetrical warfare, and national security

*Organizational conflicts of interest and insourcing pose significant risks to buyers

*Companies must differentiate from competitors with technology, customers, geographies

*Private equity and large strategic buyers will be the most active

*Improvement in the credit markets could facilitate growth and M&A activity