Regulatory requirements as a catalyst for transactions in the defense sector – M&A as an alternative to lengthy reviews when entering the defense manufacturing market.
According to current statistics, the order situation in German industry is improving in the spring of 2026, primarily due to major contracts from the defense sector, and is clearly dividing companies into ‘mover’ and ‘spectators’. This raises the question of how spectators can become active market participants; quickly, reliably, and in a way that is economically sustainable.
Building one’s own structures takes time above all else, regardless of expertise, and many companies simply do not have that time due to the generally strained situation, especially since tenders are underway and the players are already established. The hurdles for entering the defense production sector are high ranging from security clearance and export controls to investment reviews and specific certifications. Instead of lengthy new approvals, acquiring a company already active in the target segment can accelerate market entry.
However, even this strategy does not immediately lead to the goal. A key question remains: to what extent do asset and share deals differ, and which due diligence steps remain unavoidable? More on this on page 3 of the SektorReport.
An interesting example in this context is the initial public offering (IPO) of Gabler Group AG in the Scale segment of the Frankfurt Stock Exchange. More on this on page 5 of the SektorReport.
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