Sovereign capability
Established sovereign capability can be strategically valuable to buyers where specialist expertise, infrastructure or Defence credentials would be difficult or time-consuming to build organically.
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Defence
Sector experience. An active buyer network. A clear understanding of what drives value.
M&A advice for owners, shareholders and acquirers
G&G advises owners and shareholders of Australian Defence businesses considering a sale, as well as acquirers seeking opportunities across the sector.
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Active buyer network
Different buyers see different value.
Buyer interest in Defence extends beyond financial performance. Acquirers may be seeking sovereign capability, access to Defence programs and customers, specialist technical expertise, supply-chain resilience or capabilities that are difficult to build organically.
Understanding these motivations helps us identify the buyers with the strongest strategic rationale, and where the greatest value may lie.
What is driving acquisition interest
What is driving acquisition interest
Sustainment & recurring demand
Participation in long-term Defence programs, particularly where there is ongoing maintenance, support and sustainment work, can provide recurring revenue and greater visibility over future earnings.
Specialist capability
Technical know-how, specialist engineering, proprietary products and expertise in mission-critical applications can create meaningful barriers to entry.
Customer & program access
Established relationships with Defence, primes and OEMs, together with positions on key programs, can create strategic value that takes years to replicate.
The buyer lens
What will buyers value in your business?
Buyers look beyond revenue and EBITDA. The quality and visibility of earnings, Defence credentials, customer and program relationships, specialist capabilities and the ability to perform under new ownership can all materially influence value.
Revenue & backlog
How visible are future earnings?
Contracted revenue, backlog, recurring sustainment demand, program exposure and predictability of future earnings.
Customer & program quality
How embedded is the business?
Relationships with Defence, primes and OEMs, customer concentration and exposure to established programs.
Capability
What is difficult to replicate?
Specialist technical expertise, IP, manufacturing capability and difficult-to-source products or services.
Defence credentials
How strong are the barriers to entry?
Accreditations, quality systems, security requirements, procurement expertise and a proven delivery record.
People & succession
Is the business ready for succession?
Management depth, technical leadership, key-person retention and transfer of key customer relationships under new ownership.
Strategic fit
Who has the strongest reason to own it?
Different buyers may value sovereign capability, program access, expertise, supply-chain position or expansion opportunities differently.
Defence M&A themes & considerations
What owners should understand before going to market.
Not all Defence businesses attract the same level of buyer interest or value. Business quality, Defence relationships, specialist capability and strategic fit can all influence the outcome.
What buyers are focusing on
What we are seeing in the market.
Buyer interest is strongest where a Defence business offers something that is valuable and difficult to replicate:
- Sovereign capability and Australian supply-chain participation
- Long-term, contracted and recurring Defence revenue
- Mission-critical and differentiated capabilities
- Strong backlog and established customer relationships
- Scalable IP, specialist expertise and export potential
Preparing for a transaction
Early preparation strengthens value and reduces risk.
Understanding how buyers are likely to assess your business gives you time to address potential issues, strengthen the value drivers that matter and prepare for buyer scrutiny.
Key areas to consider include:
- Improve revenue visibility and demonstrate the strength of backlog
- Assess customer, program and contract concentration
- Ensure security, quality and regulatory requirements are current
- Demonstrate that specialist know-how and technical capability can transfer with the business
- Strengthen management depth and reduce key-person dependence
Considering a sale, but not ready yet?
See the business through a buyer’s eyes.
If a transaction may be several years away, there can be significant value in understanding how buyers are likely to assess the business now.
G&G’s Exit Readiness process identifies the value drivers, dependencies and risks buyers are likely to scrutinise, giving owners time to strengthen the business before those issues affect a transaction.
Preparing does not mean committing to sell. It gives you more options when the time comes.
A confidential first step
You’ve built the business. Understand its value and options.
Whether you are considering a sale now, planning ahead or simply want to understand how buyers may view your Defence business, we are happy to start with a confidential conversation.
What to expect
Confidential
Every conversation is treated with discretion.
Senior-led
Speak directly with an experienced G&G adviser.
No obligation
Start with a conversation, not a commitment.