August 2026 M&A Insider Report
Defense, Government & Intelligence | Security | Critical Infrastructure | Maritime
Download Full Report PDF →CENTCOM Launches First Multinational Attack Drone Task Force
- U.S. Central Command announced efforts to establish the first multidomain, multinational attack drone task force, designated Task Force Falcon Strike, which will employ one-way attack drones consisting of unmanned systems operating above, on, and below the sea.
- The launch of Falcon Strike follows by nine months the establishment of Task Force Scorpion Strike, the U.S. military's first dedicated one-way attack drone squadron in the Middle East.
National Debt Surpassed $40T
- On August 19, U.S. government debt surpassed $40 trillion for the first time, highlighting growing concerns over the country's long-term fiscal trajectory.
- Publicly held debt has approached 100% of GDP. Rising Social Security and Medicare costs, together with higher interest expense, are expected to push the debt-to-GDP ratio significantly higher in coming decades.
Canada Trade Tensions Escalate
- On August 22, the U.S. imposed 50% tariffs on $27.6B of Canadian goods after trade negotiations between the two countries collapsed, significantly heightening tensions with one of America's largest trading partners.
- Canada responded with matching tariffs on $27.6B of U.S. imports, targeting products including steel, aluminum, dairy, appliances, and agricultural equipment.
Fed Signals Hawkish Turn at Jackson Hole
- At the Federal Reserve's annual Jackson Hole symposium, Chair Kevin Warsh said better-than-expected summer PCE and CPI readings do not signal that underlying inflation trends have improved.
- Markets responded by pricing in higher odds of a rate hike at the September 15-16 meeting, even as pockets of labor market weakness persist.
The Pentagon is conducting a six-month review of U.S. military forces in Europe as the administration pushes NATO toward a more European-led defense posture. Pentagon policy chief Elbridge Colby told NATO allies that the review is intended to strengthen European responsibility for the continent's conventional defense while emphasizing that Europe remains strategically important to the U.S. The review is examining U.S. deployments, defense spending, procurement, strategy, and allied support for U.S. foreign policy priorities. The Pentagon expects to present Secretary of War Pete Hegseth with multiple force-posture options by November 6, ahead of the review's December completion deadline. European officials welcomed the consultations but emphasized that increased European burden-sharing and continued NATO unity remain critical.
A U.S. federal judge permanently blocked the Pentagon's designation of Anthropic as a national security "supply-chain risk," ruling that the action was illegal and baseless. The designation followed Anthropic's refusal to allow its Claude AI models to be used for certain military applications, including autonomous weapons and domestic surveillance. The Pentagon argued that Anthropic's restrictions could create uncertainty around military operations and limit the government's ability to use critical AI technology, while Anthropic argued that the designation was retaliatory and violated its constitutional rights. The ruling establishes an important precedent for government use of AI in defense and could shape future procurement relationships between the government and leading AI companies.
Treasury yields surged to multi-year highs in August as persistent fiscal pressures and energy price spikes collided with shifting monetary policy expectations. The 10-year U.S. Treasury yield reached 4.77%, a 19-month high, while the 30-year yield reached 5.34%, the highest level since 2007. Defense Primes constituents Lockheed Martin, RTX, General Dynamics, and Northrop Grumman each declined by mid-single-digit percentages during the month as missile production capacity to replace depleted inventories ramped more slowly than expected. Over the trailing twelve months, however, RTX outperformed the broader Defense Primes index at +31%, supported by expanded Tomahawk cruise missile production under a multi-year Navy framework and successful altitude testing for the F-35 Enhanced Power and Cooling System.
Multiples reflect public company trading values as of August 31, 2026 and are provided for reference purposes only. Public market multiples may differ materially from private company transaction pricing.
* Announced, not yet closed
| Value | Customer | Awardee | Scope |
|---|---|---|---|
| $131,230M | U.S. Air Force | Boeing | F-15 Eagle Crest production, integration, modernization, and sustainment of aircraft for the Air Force and other Department of War customers |
| $65,000M | U.S. Navy | Integrity Technologies (WEXMAC multi-award team) | Worldwide expeditionary logistics support, including theater opening, sustainment, distribution, and stability operations |
| $5,713M | U.S. Transportation Command | FedEx / UPS / Polar Air Cargo | Next Generation Delivery Service-2, providing domestic and international express and ground small-package delivery |
| $2,700M | U.S. Transportation Command | Seven carriers, including American Roll-On Roll-Off Carrier and Farrell Lines | Global short-term dry cargo time and voyage charter using Ro-Ro, multi-purpose, and vehicle carrier vessels |
| $997M | U.S. Navy | Ten firms, including Aptim Federal Services and Bristol Engineering Services | Construction, maintenance, repair, and engineering for petroleum, oil, and lubricant pipelines, fuel storage tanks, and facilities |
| $992M | U.S. Air Force | Torch Technologies | Technical and management advisory services for aerospace research, development, test, and evaluation at Eglin AFB, Florida |
| $987M | U.S. Army | Brasfield & Gorrie | Four facilities for component remanufacture, missile maintenance, paint, and storage at Anniston Army Depot, Alabama |
| $682M | U.S. Navy | 1080 Constructors | Power reliability and water resiliency upgrades at Portsmouth Naval Shipyard, Kittery, Maine |
| $568M | U.S. Department of Homeland Security | Oracle America | Commercial cloud computing services (IaaS, PaaS, SaaS) under the DHS Cumulus cloud acquisition program |
On August 27, a coalition of more than 100 global companies, including OpenAI, Anthropic, Google, Microsoft, and Amazon, warned that companies and governments may have only months to prepare for AI-enabled cyberattacks. The group highlighted the growing threat to critical infrastructure, including hospitals and water treatment plants, as AI makes sophisticated cyber capabilities faster and more accessible to attackers. The coalition urged organizations to strengthen defenses to keep pace with the evolving threat landscape.
The Bureau of Alcohol, Tobacco, Firearms and Explosives confirmed a major data breach after ransomware group Qilin claimed responsibility for compromising a system containing sensitive information on targets of federal investigations. While the affected system was isolated from other ATF networks and quickly shut down, the incident raised concerns over the exposure of sensitive law enforcement data and underscored the continued threat ransomware groups pose to U.S. government agencies and national security.
Cyber and technology security multiples reflect public company trading values and are anchored by high-growth platforms such as Palo Alto Networks, CrowdStrike, Fortinet, and Cloudflare. These figures are provided for reference purposes only and may differ materially from private company transaction pricing.
On August 26, President Trump signed an executive order declaring a national emergency and restricting the use of certain foreign equipment in the U.S. electricity grid. The order bars U.S. entities from purchasing or installing certain foreign-produced bulk power system equipment, including associated critical software and digital capabilities, that could pose cybersecurity or operational risks. The order also directs the Energy Secretary to identify potentially vulnerable equipment already operating in the U.S. and to take steps to monitor and secure those components.
In early August, hackers targeted water systems in 12 states, including Michigan, Minnesota, Georgia, New Jersey, and South Dakota. The attacks disrupted remote-control capabilities at several utilities and forced operators to manually control pumps, valves, and water pressure. Federal officials suspect Iran-backed hackers carried out the attacks, although investigators have not formally attributed them. The FBI, EPA, and CISA urged water and wastewater utilities to disconnect operating systems from the internet and to strengthen password protections and firewalls.
Multiples reflect public company trading values as of August 31, 2026 and are provided for reference purposes only. Public market multiples may differ materially from private company transaction pricing.
On August 31, Iran continued to apply pressure on the Strait of Hormuz by attacking two oil tankers carrying Saudi crude, raising concerns over the security of one of the world's most critical shipping routes. The attacks came as U.S. forces began striking Iranian Revolutionary Guard targets following attempted attacks on commercial shipping and American personnel. The incidents also raised concerns that Saudi shipping company Bahri was changing the names and flags of some tankers to obscure their identities and potentially facilitate passage through the increasingly contested waterway.
On August 10, the White House extended its Jones Act waiver for another 90 days to help alleviate transportation bottlenecks and fuel-price pressures stemming from the Iran conflict. The waiver allows certain foreign-flagged vessels to transport oil and commodities between U.S. ports, a significant development for the domestic maritime transportation industry.
Multiples reflect public company trading values as of August 31, 2026 and are provided for reference purposes only. Public market multiples may differ materially from private company transaction pricing.
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Complete deal tables, valuation multiples, public company comps, and contract awards across all four sectors.
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© 2026 The McLean Group. All rights reserved. Securities transactions are conducted through McLean Securities, LLC, a member of FINRA/SIPC.
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