GCG’s Q3 2022 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:
- The U.S. Senate passed a bill in September that provides $12.3bn in aid to Ukraine and authorizes the transfer of $3.7bn in U.S. weapons. This adds to the measure in May when Congress approved $40bn in assistance and earlier this year it allocated $13.6bn. Congress has now committed more military aid to Ukraine than it has to any country in a single year since the Vietnam War.
- Boeing delivered its first 787 Dreamliner in more than a year in August, ending a pause that was sparked by a series of manufacturing flaws. American Airlines took the first new delivery from Boeing’s 787 factory in South Carolina following FAA approval. Deliveries had been on hold for much of the past two years. Among the issues discovered were tiny, incorrect spacings in some parts of the fuselage.
- There were 82 transactions within the A&D industry involving United States-based targets or acquirers, increasing from 79 in Q2. 83% of Q3 2022 transactions involved strategic acquirers with the remaining 17% representing platform acquisitions by financial buyers.
- Categorically, approximately 66% of transactions took place in the Aerospace industry, 15% in Defense, 12% in the Defense IT/Services, and 7% in Space. Representative transactions are further highlighted in the report.
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