After flying high in previous years, aerospace and defence (A&D) deal-making descended fast in 2008. Indeed, the last three months of the year saw activity virtually dry up as concerns about the financial and economic background worsened, civil aviation overcapacity fears hardened and the outlook for defence sector spending remained uncertain.
Aerospace & Defence Deals 2008 reviews deal activity in the A&D industry. The report is the latest edition in our annual series on deal-making in the sector, previously titled Flying High. The report is one of a range of deals publications from PwC, covering sectors including mining, metals, renewable energy, power, oil & gas as well as A&D. Together the family of deals reports provide a comprehensive analysis of M&A activity across industries worldwide.
We examine both the rationale behind the overall trends and look at the key individual deals. We look at the year under review, the context of the preceding years, and ahead to the future direction of deal-making in the sector. We also highlight, in our deal dialogue panels, some of the critical issues for companies engaging in deal activity within the sector. Drawing on our global experience as an adviser to the A&D industry M&A players, our commentary addresses all key markets in the sector.
Looking ahead, we examine the effect of a more uncertain economic outlook on deal-making in the sector. We look at the imperatives that will continue to underpin activity as well as the factors that will inhibit deal-making. Our conclusion is that A&D deal activity will remain subdued and that companies are most likely to adopt a ‘wait and see’ attitude until key concerns about growth and financing have been addressed.