Global aerospace and defense deal activity recovered slightly from the second quarter of 2016, with deal volumes ticking up and aggregate deal value holding steady. Areas of interest currently include identity and security services and additive manufacturing, addressing increasing opportunities and threats related to the industry’s technological advances.
While the volume for deals with disclosed value greater than $50 million regained momentum this quarter, the M&A base—or deals with disclosed value less than $50 million—continues on a decline. During the past four quarters we have seen a 38% decline in M&A volume overall.
The financial share of M&A activity has been on an upward trend. This quarter financial investors contributed 57% of deal value and 27% of deal volume, showing increasing external interest in the sector.
It would appear that uncertainty around the election, government spending and the global economy are holding activity in check. While we clearly expect volumes to recover, deal making for the remainder of 2016 may be more opportunistic in nature.
For our full report and additional information on the Top 10 Deals announced for the year, our regional and subsector analyses, and the Outlook for this sector, please remember to download our:
Global Aerospace and Defense M&A Deals Insights: Q3 2016 update.
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