2014 Looks Like A Year For Big Mergers In Defense Services (From Forbes)

With Pentagon demand for technical services trending steadily downward, it is just a matter of time before some participants in that market segment decide it is time to get out. There has been little sense of urgency so far about sector consolidation because share prices for both military-hardware makers and stand-alone service providers are at record highs. Valuations are out of sync with future sales prospects, so even private-equity types are wary about doing deals. But once share prices begin sliding, sector rationalization will likely kick into high gear. I have written a commentary for Forbes here.

Loren B. Thompson, Ph.D.