Aerospace, Defense & Space
Q1 2025
Aerospace, Defense & Space Q1, 2025 M&A Market Update
In Q1 2025, AD&S M&A activity grew, with deal volume up 12% from Q4 2024. Strategic buyers drove 71% of deals, focusing on capability building and vertical integration. Cross-border deals rose 27%, fueled by demand for specialized aerospace tech and ISR platforms. Valuations stayed stable, especially for firms with unique IP, top engineering talent, and mission-critical offerings.
Trends Driving M&A for Aerospace, Defense & Space
Report Summary
In Q1 2025, M&A activity in the Aerospace, Defense & Space (AD&S) sector saw continued strength, with deal volume rising 12% over Q4 2024. Strategic buyers accounted for 71% of transactions, signaling a shift toward long-term capability building and vertical integration. Cross-border deal activity increased 27% quarter-over-quarter, driven by demand for specialized aerospace technologies and ISR (intelligence, surveillance, reconnaissance) platforms. Despite macroeconomic uncertainty, valuation multiples remained stable, particularly for companies with differentiated IP, engineering talent, and mission-critical applications.
Aerospace, Defense & Space M&A TRENDS
Key Highlights
- CLA Meridian Capital’s Aerospace, Defense & Space Practice
- Select AD&S Transaction Experience
- M&A Activity Update
- Public Market Valuations
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