As anyone who follows the industry can tell you, mergers and acquisitions activity in the aerospace and defense industry has remained robust over the past decade. In 2019 alone, there were 460 corporate acquisitions in this sector. And while a slowdown in 2020 deal activity is certainly expected as a result of the COVID-19 pandemic, results for at least the second quarter remained strong, with 84 deal closings. Further, analysts project that activity in certain subsegments of the industry, including defense, space technology, and cybersecurity, will remain vigorous for the foreseeable future, at least partially offsetting any declines in commercial aerospace transactions.
But much like the machines they produce, acquiring an A&D company is complex and requires a significant investment of both time and money to be done properly. So just as a pilot would perform a pre-flight check before takeoff, there are steps that a savvy buyer or seller of an A&D company can take to give themselves the best chance of a successful and smooth closing. This article aims to provide you a primer on some of these steps by examining some of the most common issues that arise in A&D transactions to give you a leg up on your transaction.
Continue reading at: National Law Review
