GCG’s Q3 2019 Aerospace & Defense M&A Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples and the state of the M&A environment.
Key findings include the following:
- In Q3 2019, the Aerospace & Defense (“A&D”) industry maintained strong overall performance, outpacing the broader U.S. equity market for the third straight quarter. On a 3-year period ending September 30, the S&P 500 returned 36.6%, underperforming overall gains by various segments of the A&D industry.
- There were 57 transactions within the A&D industry involving United States based targets or acquirers. 74% of Q3 transactions involved strategic acquirers with the remaining 26% representing platform acquisitions by financial buyers. Acquisitions by strategic buyers who are already backed by private equity firms blur the line between the two categories and represent a meaningful driver to industry activity.
- Categorically, approximately 46% of transactions took place in the Aerospace industry, vs. 21% in the Defense IT/Services, 19% in Defense, and 14% in Space. Representative transactions are further highlighted in the report.
Click here for the full update.