GCG’s Q3 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:
- Boeing released its long-term commercial market outlook (2021-2040) during the third quarter. Highlights of the outlook include:
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- Long term, market fundamentals and resilience driving demand through 2040 for more than 43,500 new airplanes valued at $7.2T
- Long-haul travel returning to pre-pandemic levels by 2023 to 2024
- The global commercial fleet surpassing 49,000 airplanes by 204
- There were 95 transactions within the A&D industry involving United States-based targets or acquirers, increasing from 75 in Q2 2021. This was the second-highest level of activity in the last four years after Q1 with 97 transactions. 84% of Q3 2021 transactions involved strategic acquirers with the remaining 16% representing platform acquisitions by financial buyers.
- Categorically, approximately 44% of transactions took place in the Aerospace industry, 32% in the Defense IT/Services, 19% in Defense, and 5% in Space. Representative transactions are further highlighted in the report.
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