Defense Businesses for Sale
The contracts and clearances are what attract buyers initially, but what actually holds its value is a cleared leadership team that's been running programs for years and a contract pipeline with renewals already exercised.
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$9.8M
Median Asking Price
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Featured Defense Businesses
Showing 14 of 14 listings
Critical Infrastructure & Thermal Management Systems Integrator
Defense Communications Company
Technology Solutions Provider
IT / Data Engineering Services Business
Government / Commercial Construction Management Firm
Special Ops War Contractor
Government & Commercial Services Company
Software and Document Digitization Platform
Ship Repair & Maintenance Contractor
Plastic Injection Molding Manufacturer
Engineering / Systems R&D Company
Maritime Services Firm
Government Defense Contracting Company
Government IT & Security Service Provider
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Due diligence
What to Look For
Practical guidance from hundreds of real acquisition conversations.
Contract Pipeline Quality
- Ask the seller to walk you through each active contract showing what's funded, what's committed but not yet funded, and when things come up for renewal.
- A clean pipeline with renewals already exercised is one of the strongest signals you'll find in a defense acquisition.
- Understand the difference between funded work you can count on and options that still need to be exercised.
Cleared Team Depth
- Get excited about clearances that are spread across the leadership team, not concentrated in one or two people.
- Ask about clearance levels, how long staff have been sponsored, and what the continuity plan looks like during an ownership transition.
- A bench of cleared leaders who've been managing programs for years is the asset that separates the strongest defense acquisitions from the rest.
Prime vs Sub Relationships
- Prime contractor relationships give you direct access to the government client, which is far more durable than a subcontractor position.
- Subcontractor positions can be restructured or cut when a prime decides to bring work in-house.
- Ask which programs the company leads versus supports, and how long each prime relationship has been in place.
Financial Organization
- Approved accounting systems, quality certifications, and compliance documentation already in place are worth getting excited about.
- These took years to build and are what allow a defense company to compete for certain contract types.
- Ask which certifications exist and whether any are due for renewal in the next 12 months.
Management Team Continuity
- Ask how long the leadership team has been in place and which contracts each person manages.
- Defense businesses where a president, finance director, and project leads have been running things for years are worth significantly more than founder-dependent operations.
- Find out who handles operations when the owner is out and how that has worked in practice.
Valuation
What Should You Expect to Pay?
3x-5x
SDE
Owner-dependent, smaller programs
5x-8x
EBITDA
Deep management team, multi-year funded contracts
The spread comes down to contract strength, how deep the cleared team is, and whether the management team runs the business without the owner's daily involvement.
What drives a premium
Majority of staff hold active security clearances at multiple levels
Multi-year funded government contracts with documented renewal history
Prime contractor status with direct government agency relationships
Approved accounting system and quality certifications already in place
SBA Loan Calculator
See what your monthly payments would look like at different deal sizes
FAQ
Defense Business Acquisition
What should I look for when buying a defense business?
The contract pipeline and the cleared team are the two things that matter most. Ask the seller to walk you through each contract showing what's funded versus committed, then ask about team clearance levels and tenure. Strong defense acquisitions have multiple cleared leaders, direct prime contractor relationships, and contracts that have been renewed at least once already. Browse defense businesses for sale on Rejigg to see what's available.
How much does a defense business cost?
Most defense contractors sell for 3 to 8 times annual profit. Businesses with cleared teams, multi-year funded contracts, and strong management in place reach the higher end. Smaller, owner-dependent firms with short-term contracts land lower. Use the SBA loan calculator to model financing at different price points.
How do I evaluate a defense business before buying?
Start with the contract list. Ask for a breakdown of funded work, option periods, and renewal history for each program. Then review team composition: who is cleared, at what levels, and how long they've been with the company. Ask which contracts the founder personally manages and how knowledge transfer would work. Certifications, compliance programs, and accounting systems should also be on your checklist.
What due diligence questions should I ask about a defense business?
Ask whether the company is a prime or subcontractor on each major program. Ask what happens to facility clearances and special designations when ownership changes. Find out what percentage of the contracts have been renewed at least once and what the typical renewal process looks like. Ask who manages each client relationship day to day and how long that person has been in the role.
Where can I find defense businesses for sale?
Rejigg connects buyers directly with defense business owners. You can browse defense businesses for sale on Rejigg and message sellers without going through a broker. Many defense business owners prefer this approach because it keeps buyer conversations confidential and structured.
How do facility clearances and 8(a) status transfer when buying a defense company?
Facility clearances require a government review when ownership changes, which typically adds a few months to the closing timeline. Individual employee clearances stay active as long as employees remain sponsored under the new ownership. Special designations like 8(a) and SDVOSB are tied to ownership requirements and usually cannot transfer in a standard acquisition. Understanding how much of your target's revenue depends on those designations versus unrestricted work is an important early question.
Is SBA financing available for buying a defense contractor?
Defense contractors are generally SBA-eligible, and the stable government revenue stream can make a compelling lending case. Lenders will look carefully at contract duration, renewal history, and whether revenue is concentrated in a single government agency. The SBA loan calculator can help you think through what down payment and monthly payments look like before you start negotiations.
