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Defense spending will drive M&A in ’19, but will politics derail deals?

After five strong years for mergers and acquisitions in the defense and government services sectors, federal contracting dealmakers will face an evolving array of industry and economic challenges in 2019 — but are still optimistic about growth and M&A activity.

That’s according to Tysons-based KippsDeSanto & Co., which this week revealed the results of its latest M&A survey. It finds nearly 50 percent of the respondents in the aerospace, defense and government services sectors expect M&A to remain as active this year as it was in 2018. Almost one-third expect dealmaking to increase 5 percent or more this year.

The majority of dealmakers expect valuations to level off or maybe even decrease — only 17 percent expect deal valuations to go up in 2019, compared with the 48 percent that expected an increase last year. 

KippsDeSanto is one of the most active investment banks in Greater Washington and has been advising on aerospace, defense and government technology deals since 2007. The…

Read the full story from the Washington Business Journal.



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