Economic Uncertainty Hinders the Investment Environment in the Aerospace and Defense Industry, Finds Frost & Sullivan

Economic Uncertainty Hinders the Investment Environment in the Aerospace and Defense Industry, Finds Frost & Sullivan PR Newswire MOUNTAIN VIEW, California, Oct. 25, 2012 - High upfront investments make the industry less suited for illiquid investments, such as those from private equity and venture capitalists MOUNTAIN VIEW, California, Oct. 25, 2012 /PRNewswire/ -- The volatility of the current global economy is making investors increasingly cautious and risk averse, especially in the capital-intensive aerospace and defense (A&D) industry. Investors are unwilling to commit sizeable amounts of money to an industry that has a longer gestation period than others; however, the A&D industry offers considerable opportunities to investors looking for secondary buyouts due to lower valuation multiples. New analysis from Frost & Sullivan (http://www.financialservices.frost.com), Analysis of Private Equity and Venture Capital Investment Trends in the North American Aerospace and Defense Industry, reveals that the value of private placements dropped significantly from $4.09 billion in 2010 to $1.07 billion in 2011 in the North American aerospace and defense industry. This has happened despite a minor increase in the number of transactions from 80 in 2010 to 85 in 2011. These trends indicate that investors are slowly moving from low-volume, high-value deals to high- volume, low-value deals.