What We’re Reading
In this November edition of our Aerospace, Defense & Government Services Industry Update, we review recent articles and developments impacting our target end markets. We also provide perspective on recent trends within the public markets as well as the M&A markets.
Airline Industry Sees Promise in Pilot Career-Path Programs
“Airlines around the world face the opposing pulls of pilot retirements and escalating air traffic, creating the dilemma of a pilot shortage. In recent months the industry has taken steps to narrow the coming talent gap through “career pathway” and other initiatives, although substantial challenges remain.”
Alphabet Groups Issue FBO Pricing Declaration
“Six general aviation organizations—NATA, AOPA, GAMA, HAI, EAA, and NBAA—today called for better pricing transparency in communications between FBOs and aircraft operators. Over the past two years, AOPA has been asserting that FBO pricing is often unfair.”
Modernizing the US Military by Learning from the Past
“‘Innovation’ and ‘force modernization’ are the Pentagon buzzwords of the day. Strategies are being developed across the Department of Defense enterprise, with these concepts as the foundational pillars. Is this a flawed idea involving competing philosophies? Can the U.S. be truly innovative if it wants to rapidly modernize its force?”
Three Hot Topics for Federal Contractor M&A Transactions
“Active acquirers include both long-term strategic players buoyed by rising profits and stock prices and private equity funds with unprecedented levels of capital to invest. Although certain key legal and business issues are common to most M&A deals regardless of industry sector, unique issues arise in M&A transactions involving federal government contractors.”
Perspective on Public Marketsa,b,1
Recent M&A Transactions2
a. Current stock prices in USD as of 11/30/18
b. Aircraft OEMs: BA, BBD.B, EADS, ERJ
Aerospace Supply Chain & Aftermarket Support: AIR, ARNC, ATRO, B, BBA, DCO, ESL, HEI, HRX, HXL, KAMN, MAL, MGGT, MOG.A, ROLL, SAF, SNR, SPR, TDG, TGI, WAIR, WWD
Diversified Industrial: AME, CR, CW, ETN, GE, HON, PH, RR, TXT, UTX
Defense Prime Contractors: BA, BAE, EADS, GD, HO, HII, LMT, NOC, RTN
Defense Technologies: AVAV, CHG, CMTL, COB, CUB, ESLT, FLIR, HRS, KTOS, LLL, MRCY, TDY, ULE
Government Services: BAH, CACI, EGL, KEYW, LDOS, MANT, SAIC, VEC
Diversified Services: ACM, BAB, FLR, GIB, ICFI, JEC, KBR, SRP
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