Government Services - 1st Half 2023 Newsletter

Read more about M&A activity and trends in this sector here

Market Commentary

  • Deal Volume: Government Services Deal volume remains strong but below 2022 levels with 57 M&A deals in the 1st Half of 2023 v. 78 in the same period a year ago.
  • Private Equity Participation: Private Equity continues to play an integral part of Gov’t Services M&A with platform and bolt-on deals accounting for 66% of deals (Platform: 23%, Bolt-On: 43%) in the 1st half of 2023 v. 53% in 2022.
  • FY24 Budget: The Biden administration submits $842 billion FY24 Defense Budget, representing a 3.2% increase ($26 billion) over FY23 and a $100 billion increase from 2 years ago.
  • Geopolitical Landscape: Autocratic leaders continue to drive global security policy; NATO countries are reinvigorated on defense cooperation as they, along with others, the US included, look to secure symmetric and asymmetric defenses.
  • Speed of Technology: Mission problems continue to be bigger, more complex and more real-time; Gov’t will continue to lead on Industry to help accelerate IT solutions at scale;  Need to control & dominate the digital battlespace.

Government Services Deals

By Buyer Type

Government Services PE Platforms

by Vintage Year

National & Military Intelligence Programs Budgets

($ billions)
NIP: National Intelligence Programs
MIP: Military Intelligence Programs

Defense Budget

($ billions)

We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below.


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