GCG’s Q1 2021 A&D Industry Update provides an overview of the latest trends in the sector, including recent equity market performance, valuation multiples, and transaction activity.
Key findings include the following:
- Public markets continued generally positive performance during the first quarter of 2021. The trends are more interesting viewed across longer time horizons. Our one-year chart begins on March 31, 2020, when markets were near a pandemic-related low point, with commercial aerospace indices having experienced the sharpest decline compared to the S&P 500 or defense-related indices. By March 31, 2021, commercial aerospace indices had experienced the sharpest recovery but still trail their 3-year highs.
- There were 97 transactions within the A&D industry involving United States based targets or acquirers, representing a robust increase compared to 73 transactions in Q4 2020, 52 in Q3 2020 and just 28 in Q2 2020. 88% of Q1 2021 transactions involved strategic acquirers with the remaining 12% representing platform acquisitions by financial buyers.
- Categorically, approximately 57.7% of transactions took place in the Aerospace industry, vs. 17.5% in the Defense IT/Services, 12.4% in Defense, and 12.4% in the report.
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