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ARTICLE · 13 JULY 2026

Defense: A New Deals Environment

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

Herbert Smith Freehills Kramer LLP

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Emerging technologies and government focus on security will drive new entrants and consolidation in the sector, but the realities of procurement remain a political and commercial challenge

United StatesGovernment, Public Sector
Sönke Becker
Sönke Becker
Stephen Rayfield
Stephen Rayfield
Siddhartha Shukla
Siddhartha Shukla
Joseph Falcone
Joseph Falcone
Nicholas Carney
Nicholas Carney
Joseph Fisher
Joseph Fisher
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Emerging technologies and government focus on security will drive new entrants and consolidation in the sector, but the realities of procurement remain a political and commercial challenge

Key takeaways

1 Fiscal commitments to defence around the globe have surged, with consolidation in the sector expected to drive strategic M&A.

2 Innovations and increased focus on dual-use technologies have attracted new investors to the sector, particularly venture capital.

3 Investors looking at dual-use companies must consider regulatory commitments risk, with information required for due diligence purposes often difficult to obtain.

4 The proliferation of start-ups in the sector and expected government-to-government deals will mean established defence contractors will be involved in new types of deals and contracting models.

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