Study Analyzes Aerospace Mergers and Acquisitions

Uncertainty over the Future of Defense Spending is Cause for Concern
This study analyzes the mergers and acquisitions that have taken place in the global aerospace and defense industry from January 2007 to September 2012. Deals are analyzed from both the target and the buyer's perspective. Analyses by deal value and volume across geographies and sub-segments have been covered, along with analyses of cross-border transactions and transaction multiples such as EV/revenue and EV/EBITDA. Also included are lists of transaction advisors to target and buyers by transaction value and volume.

Executive Summary
• Merger and acquisition (M&A) activity in the aerospace and defense industry has remained suppressed in 2012, with both deal volumes and deal values dropping.
• Deal values declined sharply by X percent to $X billion as of September 2012 compared to $X billion in 2011.
• In the same time frame, the number of deals dropped X percent to X as of September 2012.
• Aerospace and defense maintenance and services and aircraft systems, components, and equipment are the sectors that have dominated M&A activity in the study period.
• The percentage of transactions involving "100.0 percent of stake bought" has decreased from X percent in 2007 to Xpercent as of September 2012.
• Weaker defense budgets anticipated in the next two years are likely to result in cross-border collaborations, which is expected to be a key driver for M&A activity.
• With the possibility of sequestration being delayed as late as the end of Q1 2013, the overall deal environment is expected to be restrained owing to uncertainties regarding the expected changes.

Research Objective:
This research service analyzes the merger and acquisition (M&A) transactions in the global aerospace and defense industry from January 2007 to September 2012. Deals are analyzed by segment and geography. Cross-border deals are also analyzed. The outlook for M&A is also provided. (In charts and tables, wherever 2012 is mentioned, it refers to analysis of data as of September 2012 unless stated otherwise).

Analysis Includes:
• Across segments
• Across geographies
• Valuation multiples
• Stock price variations
• Percentage of stake acquired
• Type of buyer

Study Period:
January 2007 to September 2012

Transactions Analyzed:
1118 transactions