Aerospace & Defense: Strategic Consolidation in a High-Stakes Market

In any given week, I'm on about 20-30 zoom calls. Generally by the end of the day, I'm ready to just isolate, lay down, and throw some headphones on. However, the other day I got off a call with an Army vet that left me excited about the industry we were seeing so much activity in. Now I know what you're thinking:

How could someone who served in the Army have such invigorating and thoughtful insights to the industry? Isn't Army just another military acronym for Air Force Rejected Me Yesterday?

While both valid points, we both agreed - Aerospace and Defense M&A is in an upswing.

The Aerospace & Defense (A&D) sector is undergoing a quiet but significant transformation—and middle-market business owners are squarely in the crosshairs of buyers.

Last quarter alone, the industry saw 73 M&A deals—a 24% increase year-over-year. That’s not noise. It’s a signal.

Why the Spike in Deals?

Strategics and private equity firms are hunting for:

• Hard-to-replicate IP in sensors, autonomy, and propulsion
• Platform-stable revenue via long-term DoD and aerospace contracts
• Integration-ready ops that can plug into existing portfolios

Recent moves like TransDigm’s $765M all-cash acquisition of Simmonds Precision Products highlight a growing urgency: buyers want full-stack capabilities and control over critical components.

What It Means for Owners

If you own a specialized A&D business, you already know: You're always on.

A good friend of mine once said, “I work for myself, which means I work 24/7.”

The late nights solving quality issues, the government audit prep, the tribal knowledge embedded in your team—those are invisible on a balance sheet but invaluable in a sale.

What Buyers Are Thinking

Buyers aren’t just doing deals—they’re solving for risk.

• “Can we count on this supplier in a geopolitical crisis?”
• “Will this system be spec’d into future platforms?”
• “Can we scale this without rebuilding from scratch?”

If your answer to those is “yes,” your business has strategic weight.

The Takeaway

A&D consolidation is real, and it’s accelerating. If you’ve built something essential, now’s the time to ask:

Is your business positioned not just to compete—but to be acquired?

All jokes aside - After spending 12 years in uniform with my last five as an Air Force Special Warfare Officer and JTAC, I can say confidently that some of the finest and most intelligent people I served with served in the Army. Some of my best memories are from riding in the back of Blackhawks, clearing rooms with SF teams, and going through Army schools. Branch rivalry is a lot like sibling rivalry - amidst all of the jabs and jokes, there is always love. However, I'll always say #BeatArmy.