Accession Number : ADA444728


Title :   Defense Sector Consolidation: Will Consolidation Within the Defense Sector Improve the Financial Performance of Defense Contractors While, Simultaneously Yielding Cost Savings to Taxpayers


Descriptive Note : Master's thesis


Corporate Author : NAVAL POSTGRADUATE SCHOOL MONTEREY CA


Personal Author(s) : Martin, Chinyelu M


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a444728.pdf


Report Date : Dec 2005


Pagination or Media Count : 115


Abstract : The end of the Cold War brought with it reductions in defense spending, and a realization by many firms that a paradigm shift needed to occur within the defense industry. The defense sector had severe overcapacity, and needed to be consolidated. As defense sector consolidation was taking place, serious questions began to arise. What would happen to the defense industrial base? Would the DoD be required to pay higher prices for goods and services? Would there be an income transfer from taxpayers to shareholders? Very Large, defense focused conglomerates were/are being formed, increasing the bargaining position of the few firms that remain in the market. As the single customer for many products of the defense industry, DoD must have the ability to identify and address potential harmful effects of mergers and acquisitions. The purpose of this thesis is to determine whether consolidation activity within the defense sector yields positive net benefits for shareholders, and more importantly its effect on taxpayers.


Descriptors :   *DEPARTMENT OF DEFENSE , *COSTS , *DEFENSE INDUSTRY , ACQUISITION , DEFENSE SYSTEMS , SALARIES , FINANCE , INDUSTRIAL RELATIONS , BARGAINING , INCOME , MILITARY BUDGETS , TRANSFER , COST ANALYSIS , CONTRACTORS , THESES


Subject Categories : Economics and Cost Analysis


Distribution Statement : APPROVED FOR PUBLIC RELEASE