After two consecutive years of record North American deal counts, Aerospace & Defense M&A activity inevitably softened in 1H 2016, as did U.S. M&A activity overall. 

Highlights from this report include:

  • Aerospace & Defense deal volume fell ~13% through the end of June 2016 compared with both 1H 2015 and 2H 2015
  • Component Manufacturing M&A activity slowed as expected
  • Defense IT & Technology has rebounded on the back of increased government spending and sizeable transformative deals
  • Private equity’s heavy involvement in the sector is likely to ensure an underlying level of M&A transaction activity going forward
  • We expect to see something of a reversal in emphasis towards defense, after a period where commercial aerospace has taken the lead