As the nature of global conflict shifts from decentralized action against non-state actors to state-on-state competition, new technology and new use cases for existing technology are emerging. To fill these capability gaps, larger strategic companies are adopting an acquire-to-innovate approach—a trend financial sponsors should note as they re-evaluate their investment strategies in the space.
In the following report, William Blair’s aerospace, defense, and government services team explains the market forces driving strategic acquirers to target companies earlier in their corporate lifecycle and how sponsors might consider adapting to the trend. Topics we explore include:
- How the changing nature of global conflict creates demand for innovative technology
- Why consolidation and regulatory pressures drive the acquire-to-innovate approach
- What recent deal activity tells us about investment in the space
- How financial sponsors can drive value through national security interests in the near term