The Decade  
The Impact of 9/11 on the Capital Markets
for the Defense and Government Contracting Sector

Executive Summary

After the substantial consolidation and downsizing caused by the “Peace Dividend” in the 1990s, the Defense Industry was initially unprepared to fight the Global War on Terror following the Terrorist Attacks of 9/11. Establishing the infrastructure needed to fight this asymmetric threat required industry prime contractors to provide comprehensive solutions and technologies in areas such as communications, intelligence collection, data analytics, unmanned systems and counter-IED technologies, among others.

While requirements within the defense industry changed substantially during this period, we did not see any new entrants into the Tier-1 contracting community. Instead, primes such as General Dynamics and Northrop Grumman utilized robust M&A programs to shape their capabilities portfolio to adapt to the evolving requirements of the government customer. The Decade averaged 189 transactions per year with disclosed median valuation multiples of 0.97x LTM revenue. Read More

About The McLean Group
The McLean Group is an investment bank providing mergers and acquisitions (M&A), corporate finance, market intelligence and business valuation to middle market businesses. Headquartered in Washington, DC's technology, communications and government contracting corridor, we are among the largest independent middle market investment banks in the nation. The McLean Group serves domestic and international clients with a broad resume of successfully consummated financial transactions.

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The Decade - The Impact of 9/11 on the Capital Markets for the Defense and Government Contracting Sector

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