Aerospace & Defense Outlook for M&A
2015 seems poised to be a year of significant activity for Mergers and Acquisitions. This follows 2014, with M&A activity driven by strong cash reserves and low cost of capital. Corporate debt in particular has been cheap. Corporate leadership teams, with compensation designed to incent earnings growth have turned to M&A. Slow organic growth leads CEOs to equity transactions as a faster, cheaper, and lower risk way to boost earnings. This includes both acquiring desirable targets, and stock buyback programs.