With all the attention in the commercial aerospace industry focused on Boeing’s ongoing saga with the 787 Dreamliner, a compelling trend has emerged in the slipstream in merger and acquisition (“M&A”) activity in the sector. Transactions involving maintenance, repair, and overhaul (“MRO”) providers have represented a significant amount of deal volume in an overall robust aerospace M&A environment, particularly in the last few months.
In a memo submitted by the Army to the Secretary of Defense outlining its plans to implement spending cuts under sequestration and a continuing resolution, the service pointed to a number of operational impacts that could occur under both scenarios.
This past Thursday, Senator Chuck Hagel endured a peppering of questions during his confirmation hearing before the Senate Armed Services Committee (“SASC”). Republican panel members questioned Hagel’s past judgment on issues such as the nation’s alliance with Israel, Iran’s nuclear program, troop levels after 2014, and the 2007 troop “surge” in Iraq.
President Obama’s inauguration on January 20th was a temporary cease fire around budget debates and sequestration banter, neither of which bode well for the contracting community. However, the President’s re-election may signify new opportunities for the contracting community, specifically in the healthcare market.
It may come as no surprise that cyber companies (cybersecurity, Big Data, and Cloud) saw strong M&A activity in the second half of 2012. However, to examine the market’s cyber M&A sentiment from a different standpoint, an analysis was performed to determine if public acquirers of cyber companies experienced excess stock price returns during the three and five-day periods around deal announcements.
Over the past week, President Obama announced he would attempt to speed troop withdrawals from Afghanistan in an effort to accelerate the end of the war. The President made the announcement following his meeting with Afghan President Hamid Karzai, noting the shift in troop levels was possible due to advancements made in training Afghan security forces and the overall success of U.S. troops.
The Federal Aviation Administration (“FAA”) announced on Friday that it will launch a review of Boeing’s 787 Dreamliner that will focus on the aircraft’s electrical system and manufacturing process quality controls. The review is prompted by a battery fire aboard a Japan Airlines 787 on the ground in Boston on Monday, an issue that was just one in a string of technical difficulties with the plane over the past week.
Over the past week, Congress passed legislation designed to avoid an immediate fiscal crisis and postpone sequestration until March 1 of this year. The House voted 257 – 167, with 172 Democrats joining 85 Republicans in supporting the measure.