2025 Aerospace and Defense M&A Outlook: Key Trends and Challenges for Dealmaking
How A&D dealmakers can meet growing demand and facilitate M&A amid regulatory uncertainty, labor shortages, supply chain disruption, and technological advancements
The year ahead looks promising for aerospace and defense (A&D) mergers and acquisitions (M&A)—but that doesn’t mean there won’t be turbulence.
After a muted 2023/2024, dealmaking activity is set to rebound in 2025 as inflation eases, interest rates continue to decline, and record levels of private equity capital raised is deployed. Yet the availability of attractive assets aligned with high-growth market segments and innovative technologies will remain scarce. As such, valuations are expected to remain elevated, and competition for M&A deals is likely to intensify.
In this paper, we discuss key drivers and obstacles for A&D dealmakers as they head into 2025 and provide expert guidance on how they can position themselves for success.
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