Although not particularly pleasing for the parties involved, it is not surprising, especially under the current security policy circumstances, that major transaction projects in the defence industry are subject to considerable political influence, as the current example of ThyssenKrupp Marine Systems (TKMS) shows; cf. F.A.Z. from 31.10.2024.
However, it is obvious that companies in the security and defense industry are an extremely attractive asset class. And private equity is already significantly invested in larger companies in this sector.
In Germany, however, according to the BDSV - Federal Association of the German Security and Defense Industry around 90% of companies in this sector are SMEs with no more than 300 employees. In addition, there is a rapidly growing number of start-ups whose focus is less on "classic" defense products and more on "smart defense", deep-tech solutions in sensor technology, command and control support, effector control, etc. And this segment is rounded off by suppliers of "dual-use goods", whose sales focus could shift significantly towards military purposes as a result of current developments.
As everything indicates that the defence industry will continue to grow strongly for a long time to come and will increasingly consolidate, even across national borders, there are attractive opportunities for medium-sized companies whose products represent a valuable addition to the portfolio of strategists to significantly increase their growth with the help of suitable investors or to realize the value of their company through a sale.
Feel free to contact us at any time if you would like to discuss this without obligation or have already made concrete considerations. We have deep insights and excellent connections in this area.
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