Your 8(a) certification
doesn’t have to expire.

The certification does not automatically survive a change of ownership — it must be approved by the SBA under the new NHO ownership structure. When Kohea Foundation (a Native Hawaiian Organization) acquires majority ownership, the company applies to the SBA for approval of the ownership change. Upon approval, the certification converts to NHO-owned 8(a) status, which carries no graduation requirement and no cap on sole-source contract values. The SBA approval process typically takes 12–18 months, and all transactions are structured to close subject to that approval.

Yes — and in most cases we prefer it. Your relationships with contracting officers, your past performance reputation, and your institutional knowledge are core to the value we’re acquiring. Most sellers stay on as President or CEO for a 2–3 year transition period under an employment or consulting agreement. The terms are negotiated as part of the acquisition structure and typically include continued compensation plus earnout provisions tied to contract performance.

In a mentor-protégé structure, Kohea Foundation takes a minority equity stake (up to 40%) while you retain majority ownership and operational control. The SBA formally recognizes the relationship, allowing the two companies to jointly pursue contracts and bid as a small business joint venture. This is significantly faster to establish than a full acquisition (30–90 days for SBA approval versus 12–18 months) and does not require you to exit the business. It is particularly valuable for owners who want to keep running the company but want access to NHO joint venture advantages and Kohea Foundation’s resources and relationships.

Federal services companies are typically valued at 4–8x EBITDA depending on contract mix, revenue concentration, backlog, and clearance levels. For an NHO strategic buyer, the 8(a) certification itself carries additional value beyond the revenue — particularly if the company has active contract vehicles, multiple award task orders, or cleared personnel. Owner Exit’s free Business Valuation Calculator provides a starting estimate based on your financials and industry. A more precise valuation requires reviewing your contract vehicles, past performance, and personnel mix, which we do as part of the initial due diligence at no cost.

Continuity for employees and contracts is a primary objective of every transaction we structure. Contracts are novated to the new ownership entity through the appropriate government processes — your contracting officers are notified and the work continues without interruption. Employees are retained under the same terms in virtually all cases. The NHO ownership conversion is designed to be invisible to clients and employees during the transition period.

The timeline from first conversation to signed LOI is typically 6–10 weeks. From LOI to close depends primarily on the SBA ownership change approval timeline, which historically ranges from 12–18 months. The mentor-protégé structure can be approved in 30–90 days. Joint ventures for specific contracts can be structured in weeks. Given the SBA timeline for full acquisitions, owners approaching graduation in 2026 or 2027 should begin conversations now — not after graduation.

No. The initial conversation, valuation discussion, and structure review are all provided at no cost. Owner Exit’s eight free tools — including the AI-powered Quality of Earnings Assessment and Business Valuation Calculator — are available immediately at ownerexit.co. Kohea Foundation charges no advisory fees on the sell side. Our economics come from the acquisition itself.