UK defence and aerospace supply chain M&A
Helping defence and aerospace businesses maximise value and capitalise on growing M&A opportunities.
Corporate Finance
Defence and aerospace supply chain deal activity
Market momentum driving UK defence and aerospace supply chain activity
The most significant rearmament cycle since the Cold War is creating an exceptional opportunity for UK defence businesses.
The UK defence sector is undergoing a generational transformation. Driven by an irreversible shift in the geopolitical environment and a government commitment to sustained spending growth, defence has moved from the periphery of investor interest to one of the most actively targeted sectors in the UK mid-market.
For businesses operating across the defence supply chain, from advanced manufacturing and systems integration to maintenance, cyber, engineering services and dual-use technology, the demand for capability has never been greater, and the capital seeking exposure to that demand has rarely been more available. Long-term programmes such as AUKUS and the Global Combat Air Programme are creating multi-decade supply chain visibility that flows through to tier 2 and tier 3 suppliers. For UK defence businesses, the question is no longer whether investor interest exists, but how best to position to capture it. Explore our recent Corporate Finance Deals for further insight into current market activity.
Key deal drivers shaping UK defence and aerospace supply chain activity in 2026
A window for exits and pre-exit growth
Areas of enhanced buyer focus
These sub-sectors benefit from structural insulation from economic cycles, driven by regulation and long-term compliance obligations.
Platforms and systems
Advanced manufacturing, systems integration, electronics and sensors, C4ISR, secure communications.
Cyber and digital
Cyber security, electronic warfare, AI-enabled defence systems, secure cloud infrastructure.
Dual-use technology
Unmanned systems, satellite and space, critical national infrastructure protection.
Advanced manufacturing, systems integration, electronics and sensors, C4ISR, secure communications.
Cyber security, electronic warfare, AI-enabled defence systems, secure cloud infrastructure.
Unmanned systems, satellite and space, critical national infrastructure protection.
Maintenance, repair and overhaul
Air, land and naval platforms, government contracted, long-term revenue.
Engineering and professional services
Defence engineering, project management, technical advisory to MOD and prime contractors.
Supply chain and components
Aerospace components, specialist manufacturing, munitions supply chain, propulsion systems.
Air, land and naval platforms, government contracted, long-term revenue.
Defence engineering, project management, technical advisory to MOD and prime contractors.
Aerospace components, specialist manufacturing, munitions supply chain, propulsion systems.
Services
How we can help
Crowe UK provides integrated deal advisory services with a strong emphasis on commercial value, execution certainty and outcomes.
Our team combines transaction experience, sector insight and financial rigour to support clients at every stage of the deal lifecycle, from strategy and preparation through to execution and completion.
Capital Markets
Supporting businesses considering equity raises, shareholder liquidity events and capital structuring, helping position them clearly and credibly for investors, funding discussions and long-term sustainable growth.
Mergers and Acquisitions (M&A)
Advising on buy-side and sell-side transactions, supporting teams and shareholders with target identification, buyer sourcing, process management and negotiation, maximising value and achieving strategic outcomes.
Valuations
Delivering robust business valuations for statutory and transactional purposes, including purchase price allocations, providing clear insights that support decision-making, reporting requirements and stakeholder confidence.
Due diligence
Going beyond the numbers to assess earnings quality, cashflow, working capital and key commercial risks, providing useful insights to support negotiations, manage risk and inform post-deal planning.
Modelling
Developing flexible financial models to evaluate scenarios, assess performance and support strategic decisions, combining technical accuracy with commercial insight to provide clarity in complex situations.
Debt advisory
Advising on debt raising, refinancing and capital structure optimisation, supporting lender engagement and funding strategy to ensure financing solutions align with business objectives and transaction requirements.
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