M&A in Aerospace and Defense | Q3 2023

The aerospace and defense (A&D) industry is highly competitive, with a limited number of major players. Consequently, mergers and acquisitions (M&A) activity in the sector is low, but when deals happen, they are often large and transformative. Recently, there has been a trend toward consolidation in the A&D sector, as companies look to gain scale and market share. This has been driven by several factors, including the rising cost of developing new technologies, the increasing complexity of defense programs, and the growing importance of global supply chains. M&A activity in the A&D sector is expected to remain strong in 2024, as companies look to consolidate their positions and gain access to new technologies and markets. Due to increasing importance of artificial intelligence and other emerging technologies in A&D, companies are looking for targets with expertise in these technologies to develop new products and services and improve their operational efficiency. Overall, the outlook for M&A in the A&D sector in 2024 is positive, as it can be a powerful tool for companies to achieve their strategic goals.