Aerospace & Defense Cross-Border Joint Ventures: Managing high complexity, driving remarkable growth
While the shrinking defense budgets in the US and Europe coupled with the robust backlog in commercial aerospace are front and center in the Aerospace & Defense (A&D) industry today, vibrant growth in the form of cross-border joint ventures across new centers of excellence.
2013 Global aerospace and defense industry outlook
The global defense segment is expected to see continued declines in revenue for the third consecutive year, due to decreased military spending, mainly in the United States (U.S.) and Europe. On the other hand, the commercial aircraft segment is expected to reach record levels of revenues in 2013.
Three Keys to M&A Effectiveness for Aerospace & Defense Executives
Capturing the full value of strategic acquisitions
A variety of factors – including pent-up demand and available capital – suggest that the recent uptick in merger and acquisition (M&A) activity is the beginning of a boom for the aerospace and defense (A&D) industry. Companies that identify the right acquisition targets and capture their full strategic value might be positioned for future competitive advantage.
This paper leverages findings from a Deloitte study of the relationship between A&D companies’ M&A strategy and their financial performance to identify three characteristics that companies which outperformed the sector generally shared and under performers did not. These three keys can assist industry leaders as they prepare their companies to take full advantage of potential M&A opportunities:
- Manage the demands of integration by limiting your total number of acquisitions.
- Make M&A central to your company’s growth strategy by implementing meaningful acquisitions.
- Target companies whose business models enhance your company’s market power.
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