The “Golden Dome” missile defense project, announced by President Donald Trump in May 2025, is set to reshape the aerospace and defense (A&D) mergers and acquisitions (M&A) landscape. With an initial $25 billion budget and projected costs of $542 billion over the next 20 years, this space-based missile defense system aims to counter threats from nations like China, Russia, Iran, and North Korea.
How the Golden Dome Will Drive M&A Activity
This massive initiative is expected to spark significant M&A activity in the A&D sector. Companies specializing in missile defense, space technologies, and related systems are likely acquisition targets as major defense contractors ramp up capabilities to meet project demands. For privately held businesses, this heightened interest could lead to increased valuations and opportunities to explore sell-side advisory services.
Opportunities for Private Equity and Investment Firms
The Golden Dome’s long-term funding and scope make it a strong opportunity for private equity firms and investment banks. These organizations can invest confidently in the defense sector, given the stable outlook. M&A advisory firms specializing in aerospace and defense can assist in navigating deals that align with the goals of the Golden Dome initiative.
Strategic Advantages for Mid-Tier Suppliers
Mid-tier suppliers with expertise in specialized technologies or manufacturing are set to benefit from new demand. These companies may consider scaling operations, forming strategic partnerships, or exploring exit strategies in aerospace. Working with an experienced aerospace and defense M&A advisory firm can help optimize outcomes in this fast-changing market.
Government Contracting M&A Implications
The Golden Dome highlights the critical role of government contracting in defense. Businesses already holding government contracts or those well-positioned to secure new ones will likely see increased acquisition interest. Investment banking for manufacturing firms involved in defense production will play a key role in ensuring transactions align with government procurement goals.
Navigating the Future of Aerospace and Defense M&A
The Golden Dome represents a transformative shift in U.S. defense strategy, creating new opportunities and challenges for the A&D sector. KAL Kal Capital’s deep expertise in aerospace and defense investment banking positions us to help privately held businesses capitalize on this evolving landscape. Whether you’re looking to sell, scale, or strategically position your company, we provide tailored M&A advisory services to achieve your goals.