Well said, Austin. I love the Tatte analogy. While I agree that defense startups need more time to mature, I think M&A should happen at earlier stages. It’s not an efficient use of capital or time for startups to build overhead that isn’t uniquely tied to their core product when they need to scale. By teaming up earlier, startups can accelerate their emerging technologies much faster to address the threats of today and tomorrow.
Great analysis as always. I’m interested to see the multiples these start ups get acquired for and what premium existing primes will be willing to pay. There are some heady valuations out there and I’m uncertain some of these companies will grow into them.
Well said, Austin. I love the Tatte analogy. While I agree that defense startups need more time to mature, I think M&A should happen at earlier stages. It’s not an efficient use of capital or time for startups to build overhead that isn’t uniquely tied to their core product when they need to scale. By teaming up earlier, startups can accelerate their emerging technologies much faster to address the threats of today and tomorrow.
Great analysis as always. I’m interested to see the multiples these start ups get acquired for and what premium existing primes will be willing to pay. There are some heady valuations out there and I’m uncertain some of these companies will grow into them.
I wish we had more data on some of the $50-300M acquisitions - would help understand these multiples.