Most people hear “hot M&A market” and assume the worst: inflated prices, reckless buyers, and deals that won’t survive the first downturn.
That’s not what’s happening in aerospace and defense.
What we’re seeing right now is something far more powerful—and far more durable. Every major segment of the industry is moving in the same direction at the same time. Defense. Commercial aviation. Business jets. Space. All growing simultaneously.
The companies coming to market aren’t missing forecasts—they’re beating them. Buyers aren’t walking away when deals get difficult. They’re leaning in, solving problems that used to kill transactions, because the underlying fundamentals have changed.
This is not a fragile bubble.
It’s a structural shift.
Capacity Is the New Currency in Aerospace M&A
The companies that survived COVID are now operating at or near full capacity. Hangars are full. Shops are booked. Engine and component backlogs stretch years into the future. Demand is outpacing supply—and there’s no quick way to add either people or certified capacity.
As a result, strategic buyers aren’t just chasing IP anymore. They’re acquiring throughput, skilled labor, certifications, and physical infrastructure. Capacity itself has become a scarce and highly valuable asset.
Private Equity Has Grown Up in Aerospace
At the same time, private equity has evolved. Aerospace-focused sponsors are no longer tourists—they’re specialists. Many are now building aerospace-only platforms capable of competing directly with strategic buyers.
The middle market, once an “hourglass” with little depth, is filling in fast with scaled, professionalized operators that can support real platform strategies.
The Macro Tailwinds Are Impossible to Ignore
Zoom out and the story becomes even clearer:
- Public aerospace and defense companies trade at sustained premiums
- Aircraft production rates are climbing
- Engine OEM backlogs stretch for years
- Commercial space launches continue to compound
- Defense spending remains structurally elevated
Across the board, barriers to entry are higher than ever, creating powerful moats that protect the entire aerospace and defense ecosystem.
Inside the Middle-Market Deal Environment
In this episode, I sit down again with Bill Alderman and Ryan Kirby of Alderman & Co to unpack what’s really happening inside the middle-market aerospace and defense M&A environment—and why, for the first time in decades, every major segment of the industry is moving in the same direction.
If you want to understand where aerospace M&A is headed—and why this cycle looks nothing like the last one—this conversation lays it out clearly.
Co-founder and Managing Partner for CRAIGPICKEN Executive Search, Craig is focused on recruiting senior level leadership, sales and operations executives in the aviation and aerospace industry. Clients include premier OEM’s, aircraft operators, leasing / financial organizations, and Maintenance / Repair / Overhaul (MRO) providers. Since 2008 he has personally concluded more than 400 executive level searches in a variety of disciplines