Mission control: Global aerospace & defense industry M&A analysis: Q2 2012
Mission control is a quarterly analysis of global merger and acquisition (M&A) activity in the aerospace & defense industry. Each edition includes a review of overall deal activity for the quarter and year-to-date, as well as a summary of large deals.
This quarter's analysis revealed:
- Overall activity in the sector recovered during the second quarter of the year, after a lackluster first quarter.
- US participation in M&A decreased and the balance of deal making shifted more toward emerging markets, in particular the BRICs.
- Defense companies diversified more into small industrial businesses.
- The difference in aerospace and defense growth outlooks have generally flowed through to valuations for these respective targets, with aerospace companies tending to earn a premium valuation over defense companies.