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Aerospace EBITDA & Valuation Multiples – 2024 Report

Aerospace Multiples Tn

Last Updated: February 1, 2024

This report compiles data on EBITDA and revenue multiples paid for private aerospace companies in Q1 2024. The data below comes from proprietary research, private equity networks, and interviews with M&A experts. (Sources

Each table is broken down according to significant subsectors within aerospace, as well as EBITDA and revenue range, respectively.

EBITDA Multiples for Private Aerospace Companies, Q1 2024

Company Type EBITDA Range
$1-3M $3-5M $5-15M
Airport Infrastructure & Security 6.4x 8.9x 10.2x
Alternative Fuel 4.8x 6.3x 10.6x
Military & Defense 7.6x 10.6x 14.8x
Private Aviation 5.9x 8.7x 12.1x
Satellite Communications 4.8x 8.2x 11.5x
Space Laboratories 8x 10.3x 12.2x
Space Tourism 6.7x 8.1x 13.2x
Unmanned Aircraft Systems 7.3x 10.1x 14.1x

Revenue Multiples for Private Aerospace Companies, Q1 2024

Company Type Revenue Range
$5-10M $10-25M $25-100M
Airport Infrastructure & Security 1.4x 3.4x 4.7x
Alternative Fuel 2.1x 2.9x 4.2x
Military & Defense 3.1x 4.7x 6.1x
Private Flights 1.7x 2.4x 3.4x
Satellite Communications 2x 2.8x 3.8x
Space Laboratories 1.5x 3.1x 4.5x
Space Tourism 2.2x 3.1x 5x
Unmanned Aircraft Systems 2.2x 3.6x 5.1x

The following sections include insights taken from the data above, as well as an overview of aerospace M&A in Q3 2023 moving into 2024.

State of Aerospace M&A in 2024

The aerospace industry has felt the effects of the last three years as profoundly as any other. The sector experienced modest growth until the recession of Q2 2022 dropped valuations once again. As the industry strives to achieve pre-pandemic highs, it’s met with high energy prices, inflation, and rising federal interest rates. Still, multiples have begun to rise again as of Q1 2024, which may portend the sector’s recovery.

The graph below illustrates M&A activity for private aerospace companies since 2020.   

Aerospace EBITDA Multiples, H1 2021 – Q1 2024 (Current)

Chart (4)

A standout in the aerospace sector is defense contracting; with the 2024 defense budget at <$842.7B, the sector saw nearly ~$40B YoY growth over last year. As a result, M&A transactions for this specialty saw higher multiples than other subsectors, averaging ~12x compared to the still impressive ~8x exhibited by other subsectors. 

Overall, M&A activity within aerospace is off its highs, but earnings and multiples have slightly increased in 2024. The market has less overall deals occurring but those deals are still seeing attractive multiples and the cash portion of deals is about the same as what we were seeing in 2019. Private equity has become an even bigger player in the last 5 years, accounting for nearly 75% of M&A buyers in H2 2023. Based on the available deal data, many PE shops are adopting a buy-and-build strategy, purchasing multiple add-on companies in preparation for the larger transaction down the road. 

Our analysts forecast the following trends moving into 2024: 

  • Defense will continue to be the highest performing subsector: Lucrative government contracts typically make defense companies more likely to exhibit high valuation multiples, both due to their perceived value as well as the defense company’s Rolodex, which is desirable to both PE and strategic buyers. 
  • Private equity will continue to dominate aerospace M&A: Because strategic buyers typically aim to purchase a company outright, they often price themselves out of prospective deals. By contrast, the PE firm model, which involves buy-and-build deals that contain attractive equity packages, tends to win over owners in a competitive process. 
  • The deal process will be “touch and go”: The PE model, which is conditional on aggregating multiple businesses – 1 platform and several add-ons – creates an atmosphere for buyers where deals can fall apart if the parts of the PE firm’s strategy don’t all fall into place. The data shows that owners represented by an M&A advisor or bank have a better chance of their deal going through to completion.

Top Ma Firms In The Us 2024

Selling Your Aerospace Company in 2024

Even the most experienced business owners can become overwhelmed during an M&A process. The turbulence of macroeconomic conditions and the peculiarities of deal making in the aerospace industry make it even more challenging. 

As a CEO who’s sold multiple companies to both strategic acquirers and private equity firms, I believe in transparency when it comes to valuations, and that can be hard to find in the M&A world. I’m happy to discuss my experience with fellow business owners or offer a word of advice. Feel free to contact me at the e-mail address listed below or through this website’s contact page.


Evan Bailyn

Evan Bailyn is a best-selling author and award-winning speaker on the subjects of SEO and thought leadership. Contact Evan here.