GovExec Adds Events Group Federal Business Council to Stable

GovExec, a platform that offers government market intelligence and content, bought Federal Business Council, a government agency events producer, bringing total acquisitions over the past few years to 17. 

Private equity firm Growth Catalyst Partners (GCP), which bought a majority stake in GovExec in 2020, backed the purchase of FBC, which will continue to operate as an independent division under Chief Executive Officer David Powell. Terms of the deal were not disclosed. 

“We see opportunities to increase awareness with the respective audiences of each, and grow FBC’s attendance at events, in particular,” Tim Hartman, chief executive officer at GovExec, told AMO. “We also see a great opportunity for us to expand the marketing services and events extensions that FBC offers.” FBC did not respond to a request for comment. 

FBC, founded in 1976, calls itself “a comprehensive resource for marketing to the federal government.” The company has held an average of 175 events annually. Events include the Government Procurement Conference, fostering business partnership between the federal government, contractors and small, minority, veteran-owned and women-owned businesses, and The Army Heat Center Heat Forum, which showcases the latest technology, products and services geared toward the U.S. Army.

“The acquisition offers an opportunity for FBC to scale its events and reach new industry audiences through GovExec’s marketing and digital capabilities,” the companies said in a press release. “The acquisition enables GovExec to offer a more comprehensive suite of products to help federal employees and agencies achieve their missions.”

GovExec, once a print magazine, now bills itself as providing “essential sales and marketing intelligence that connects the government and the contractors who support their strategic initiatives.”

Hartman told AMO last year that the company aims to build the largest and smartest database of government buyers and what they intend to buy.

M&A Heating Up?

The deal was “a great strategic home for” FBC, Jackson Mills, managing director of technology and media investment banking at Leonis Partners who advised FBC on the deal, told AMO. 

Dealmaking appears to be on the rise as highly-focused events and B2B publishers remain attractive assets, and as buyers and sellers start seeing more eye to eye on price. Private equity buyers are active, as are those corporates looking to do bolt-ons or add-ins to provide more for existing customers and bring in new ones.  

For the FBC/GovExec deal in particular, the direct fit supports audience expansion and ways to better serve their audiences, Mills said.    

“If it directly fits and is additive to unlocking incremental audience, that makes a lot of strategic sense— there’s really strong appetite for M&A and getting a deal done,” Mills said. 

While buyers and sellers had previously not been seeing eye to eye on pricing, Mills said his office is busy and “both sides continue to find a way to get in the middle a little bit more than maybe it was 12 or 18 months ago.” 

EBITDA multiples for better assets are in the “high single digits,” where middle of the road companies will see “mid-single digits,” Mills said. There’s also room for distressed assets to sell, assuming there is value to be unlocked, like strong brand heritage.