The March Group, a leading middle-market M&A firm, has noticed a rise in interest among buyers for defense sector businesses. The 23-year-old firm, which specializes in the marketing, negotiation and sale of privately held mid-size companies, has seen an increase in inquiries regarding defense-related businesses of all kinds, including those manufacturing guns, gun parts and ammunition; creating software and offering IT support; providing training and consulting; as well as those catering to shooting enthusiasts and hunters.
Bob Scarlata, CEO/President of The March Group, recently stated, "Based on the defense-related deals we have active right now, we are seeing significant and solid interest from defense-related buyers - both strategic and financial. Essentially, any company involved in any way with defense - either military or homeland defense - is hot property right now.”
With the United States fighting two wars simultaneously and continuing to improve homeland security, defense-related products and services are in high demand. Despite proposed cutbacks in specific weapons programs, the Obama administration still plans to boost military expenditures by 4 percent next year (not including outlays for the conflicts in Iraq and Afghanistan) and increase homeland security funding by 6 percent.
Congress seems bent on spending even more on defense. At least $707 billion has been allocated for the Department of Defense, the Department of Homeland Security and the two wars in 2010.
Some of the reasons cited for the increased interest in defense-related firms are as follows:
- The defense industry is fragmented.
- Cash-rich defense contractors are looking to buy small, niche technology companies.
- Private equity firms want to expand and diversify their portfolios.
- European defense manufacturers are eager to gain a U.S. presence.
The March Group is uniquely qualified to facilitate the sale of such companies because of its strong track record in the defense business field. In May of 2008, The March Group arranged the sale of pioneering rifle manufacturer DPMS/Panther Arms to an affiliate of the private equity group Cerberus Capital Management.
Earlier this year, The March Group brokered a deal whereby Aspiration Software Inc. was acquired by The Shawmark Group, a private equity company that invests in service providers to the U.S. intelligence community.
The March Group also found a buyer for General Products; this defense industry machine shop and subcontractor was sold to East End Capital Management/Obelisk Group. Yet another March Group deal was the sale of Advanced Ordnance, LLC (a precision machining/firearms business) to AOC Equity, a division of Juno Investments.
Among its current clients, The March Group represents the following companies:
- Fabricator of training and combat simulators
- Anti-terrorism and perimeter protection software
- Specialty alloys fabrication and testing facility - Department of Defense contracts
- Full-service trucking company - serves Department of Defense, among other customers
Visit corporations4sale.com to see a complete list of The March Group’s clients, or contact Nikki Forbes in Capital Markets at nikki.forbes@marchgroup.com or 954-282-3384. To learn how The March Group can help you find a buyer for your defense-related business, contact George Markis at gmarkis@marchgroup.com or 954.282.3335.
About The March Group
Selling Businesses since 1986. The March Group is a leading, global mergers and acquisitions firm specializing in the North American middle market. The firm has multiple offices throughout the United States and abroad and possesses over 23 years of successful transaction experience.
View our inventory of companies on the market at corporations4sale.com. Register as a "Buyer" to benefit from our many online conveniences such as Market Alerts. Market Alerts enables The March Group to e-mail you directly with acquisitions that fit your preferences. It also allows you to save your favorite searches and receive our newsletter.
Contacts:
The March Group, Coral Springs
Kelli Matonak, 954-282-3336
kmatonak@marchgroup.com
www.marchgroup.com
www.corporations4sale.com
www.linkedin.com/companies/march-group
twitter.com/marchgroup