00:00You and the team have been reporting on this deal slowing down, but then you get the likes of Advent
00:04selling a UK maritime maritime company. Is this just the only sector that's alive and well at the
00:11moment? Yeah, I think you're absolutely right that when generally, obviously, a lot of deals
00:17are on pause because of the situation in Iran. There's one big exception, as you say, and that's
00:21defense. For obvious reasons, you know, with conflicts going on from Ukraine to Iran and
00:26beyond, we're just seeing a huge surge in demand for these defense and defense tech companies.
00:31So owners, whether it's private equity firms like Advent or big primes like Rye Mittal, are out there
00:37aggressively selling defense assets or buying to build their war chest literally and figuratively
00:43for future future demand. Then I guess what happens, Aaron, from here on out, I mean, I don't
00:50want to be crass, but it's kind of like, you know, Seahawks win the Super Bowl and they look to
00:53sell
00:54themselves. As this war drags on, what does the pipeline look like? Does it continue to boom
00:59for defense companies? Yeah, I think that was the really big question is, are we going to see
01:04just a bubble or a permanent trend? And talking to M&A advisors in this space, they're saying
01:09they're busier than they have been in the last quarter century. And we know that the pipeline is
01:14full. Look at some of the big IPOs coming up. We had one of the biggest defense IPOs of all
01:18time,
01:18CSG, an ammo company, launched earlier this year. And KNDS, the maker of the leopard tank, which is
01:24used actively in Ukraine, is also planning an IPO before summer. So I think we're going to see some
01:29mega transactions because investors, even those that, you know, previously hesitated to invest in
01:34defense, are clamoring for exposure to the sector. As you say, everyone is, you know, not celebrating
01:40the tragedies we're seeing in Iran, but they realize there is a real demand for the equipment,
01:44for the technology.
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