Mission control: Third-quarter 2014 aerospace and defense industry mergers and acquisitions analysis

October 2014
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Mission control: Third-quarter 2014 aerospace and defense industry mergers and acquisitions analysis

At a glance

Despite being one of the weakest quarters for deal volume and value in recent years, 2014 is still on pace to exceed 2013 deal totals. PwC continues to monitor several trends impacting deals in the aerospace and defense sector, including clearer defense demand, consolidation of the MRO industry, and leveraging cash and short-term investments.

Explore the data

Explore the data

Welcome to Mission control, PwC's quarterly analysis of merger and acquisition (M&A) activity in the global aerospace & defense sector that provides an overview of the most recent M&A results and our expectations for future deal activity.

Highlights of what this quarter's analysis revealed:

  • Clearer defense demand is contributing to a better deal environment.
  • Aerospace targets still represent the largest segment of the market.
  • Expansion opportunities exist within the consolidation of a fragmented MRO industry.
  • A general upward trend in the amount of cash and short term investments held on the balance sheets of leading A&D companies may support future acquisition activity in a changing competitive environment.
  • M&A valuations remain robust across the sector driving, in part, a high rate of divestitures among defense companies.

Download the analysis to review all the key trends from 3Q14.

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