Aviation Week Publishes Grundman Opinion, “How M&A Is Remaking Aerospace”
Writing in the Up Front column of Aviation Week & Space Technology, Steve Grundman takes stock of how mergers and acquisitions are reshaping the structure of the aerospace and defense industry: “Five years beyond the inflection marked by the Great Recession’s bottom and Iraq War’s end, the market for mergers and acquisitions in aerospace and defense is finally heating up and taking shape. At this halfway point through 2015, the value of transactions this year is approaching $30 billion, a pace roughly twice the trailing ten-year average. The deals comprising this surge have brought into focus three trend lines of corporate development along which we now can discern the first wave of restructuring to the aerospace and defense industry post-2010. Alongside these themes also is emerging a leading indicator of what may form a second wave.” The essays concludes that “[t]he structure of A&D that will result from these post-2010 corporate-development strategies will comprise a more varied grouping of company types and competition dynamics than exists now among the collection of firms that emerged from the post-Cold War restructuring.”
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