Analysts: Defense Industry Valuation Recovering From Sequestration

More certainty regarding defense spending has fueled a recent surge in company valuations and merger and acquisition activity, analysts said at a Feb. 23 panel on the defense industry in Washington sponsored by Bloomberg BNA and hosted by Squire Patton Boggs.

Greater stability, along with growing demand overseas for security-related goods, should boost confidence in the defense contracting industry, they said.

Sequestration left corporations unsure where to invest in their businesses and where to cut back, Lincoln International Managing Director Razmig Arzoumanian said. “As that lifted, people finally could move their chess pieces around and execute transactions they had thought ...