With Congress poised to slash spending to cut the deficit, more large companies are seeking an edge in the competition for federal dollars by acquiring small contractors.

Acquisitions of small government vendors rose by 22.4% last year to 71, the highest level since 2000, according to calculations by Houlihan Lokey, an investment bank in Los Angeles.

Last year was "the most transactions in this space ever," and this year's acquisitions are on pace to match it, said Jean Stack, a managing director at Houlihan Lokey. Read Full Article