Flying High: A review of M&A activity and key trends within the global A&D sector

We are pleased to announce the launch of the second edition of Flying High, a review of M&A activity and key trends within the global A&D sector.

Last year’s review of M&A activity concluded that the total value of disclosed transactions in the sector in 2006 was comfortably the highest since 2000. 2007 saw disclosed transactions totalling nearly $31bn, confirming our view that the industry remains strong despite recent downturns in other sectors.

The key observations that we explore in this paper are:

  • Buoyant A&D activity remains centred in North America and Europe, but transactions involving other geographic regions continue to rise
  • The US has been the most significant investor in 2007, with the bulk of investment coming from repositioning in the domestic market
  • Intra-European deals have been notably absent due to the weak dollar depressing margins and making North American assets cheaper
  • 2007 was a record year for transatlantic M&A, with money crossing both ways
  • Private equity participation in the sector continues to increase and contribute to increasing average deal size