Summary
This technical report presents the findings of the 2025 M&A Survey focused on the Aerospace, Defense, and Government Services sectors. The survey reveals a strong optimism among respondents regarding M&A activity in 2025, with 81% expecting moderate to strong economic growth, a significant increase from the previous year's 53%. It outlines the influence of credit markets and interest rates on M&A momentum, noting a return to levels seen in 2023. The report details that 43% of respondents anticipate an increase in M&A target valuations, while 61% expect a rise in overall deal activity for 2025. The report also highlights a shift in sentiment post-2024 election results, indicating a more cautious yet positive outlook among dealmakers. Additionally, it discusses sector-specific interests, with a notable focus on the Department of Defense and Intel markets, although interest appears to be cooling compared to previous years. Overall, the report aims to provide a comprehensive view of the factors influencing M&A decision-making in the upcoming year.
