Aerospace & Defense Company Valuation

The U.S. aerospace and defense (A&D) sector is forecast to exceed $1 trillion in total market size by 2026, driven by increased federal defense budgets, global security demands, and rising commercial aviation orders. The industry spans OEMs, Tier 1–3 suppliers, and defense contractors working under FAR/DFARS compliance. With long procurement cycles and classified work, accurate business valuation requires deep sector knowledge and government contracting expertise.

What Makes Aerospace & Defense Valuation Unique

Valuing an A&D company involves understanding both contract performance and strategic relevance to national programs:

• Government Contract Vehicles & IDIQ Awards: Multi-year contracts and indefinite-delivery vehicles offer high predictability and long-term revenue visibility.

• Defense vs. Commercial Mix: Different end markets carry varying margins, regulatory risks, and cyclicality.

• Technology Differentiation & Certifications: Proprietary components, ITAR compliance, and AS9100 certifications boost defensibility and value.

• Backlog & Book-to-Bill Ratio: A strong backlog with favorable book-to-bill trends supports valuation multiples and cash flow forecasts.

• Cybersecurity & CMMC Readiness: Increasing regulatory focus means firms with secure platforms are better positioned for future awards.

Key Valuation Metrics for A&D Firms

At InteleK, our A&D valuation methodology emphasizes technical complexity, revenue visibility, and regulatory compliance:

• Backlog Size & Revenue Run Rate: Backlog quality and burn rate determine short- and mid-term financial forecasts.

• EBITDA Margin & Fixed Cost Absorption: High compliance costs and CapEx intensity make operational leverage critical.

• Customer Concentration (Prime vs. Subcontract): Risk is lower with prime contracts vs. subcontracting under volatile primes.

• Security Clearances & Facility Ratings: Classified work capacity significantly enhances strategic value.

• Export Control & IP Licensing: Defense technology firms with exportable platforms often receive valuation premiums.

• Valuation Multiples: Strong A&D contractors typically trade at 1.2–2.0× revenue or 7–12× EBITDA, depending on contract mix, margins, and tech assets.

Why Aerospace & Defense Companies Need Valuations

Accurate valuations are essential for stakeholder alignment, regulatory planning, and long-term growth:

• Equity Transfers & Succession Planning: Especially vital for family-owned or closely held contractors with long program histories.

• M&A & Strategic Investment: Valuations support negotiations with primes, private equity, or foreign buyers (CFIUS implications considered).

• Compliance & Financial Reporting: Valuations are often required for tax planning, GAAP compliance, and investor due diligence.

• Capital Planning & Joint Ventures: Essential when launching new facilities, hiring clearable talent, or bidding classified work.

Why Choose InteleK for Your Aerospace & Defense Business Valuation

InteleK is trusted by aerospace suppliers, DoD contractors, and classified technology firms across Huntsville, San Diego, Dallas, Boston, Washington D.C., Seattle, and beyond. Our appraisers hold elite credentials, including:

• Chartered Financial Analyst (CFA®)

• Accredited in Business Valuation (ABV®)

• Accredited Senior Appraiser (ASA®)

• Chartered Alternative Investment Analyst (CAIA®)

• Professional Risk Manager (PRM®)

We deliver three report types to suit different levels of need:

• Indicative Appraisal (Non-Certified) – Ideal for early planning and internal strategy

• Summary Appraisal (Certified) – Suitable for moderate risk or investor discussions

• Detailed Appraisal (Certified) – Full documentation, citations, and audit‑ready analysis for transactions, litigation, or regulatory use

All reports come with a one-on-one appraiser consultation, where we explain the value, methodology, and key insights in plain terms.

Serving Aerospace & Defense Firms Nationwide

From satellite component makers and avionics integrators to DoD-certified defense contractors, we’ve worked with A&D companies across every capability and clearance level. Whether you’re preparing for a sale, raising capital, or navigating a generational transfer, our valuation services support your operational and regulatory mission.
InteleK Business Valuations & Advisory proudly serves clients across the United States, including:
📍 Huntsville, Los Angeles, Austin, Washington D.C., Boston, Seattle, Dallas, and More (visit State page selector)