Many will just close the doors and stop the financial hemorrhaging. Stash the cash and do something else. Downsize to a level that will permit an extended hunker down. My company has been shrinking and relocating as much as possible. We're in the bull's eye for a big hit with sequestration. We know from past harsh experience that when those engineers with the corporate memory to run the sophisticated DoD tasks are dumped on the street, they are never coming back. Those projects are toast. They will find an employer who isn't going to dump them and will have no reason to return.
Many will just close the doors and stop the financial hemorrhaging. Stash the cash and do something else. Downsize to a level that will permit an extended hunker down.
I think you will be correct in what will happen. On the other hand I expect draconian laws to be passed that will allow the Government to confiscate “Unused and Excessive funds”. Those people are desperate for all the money they can get into their hands.