INDUSTRY UPDATE | Q4 2025
Defense & Government
CCA releases quarterly updates regarding relevant market insights for the Defense and Government Contracting space. Interested in receiving the updates via email? Subscribe here.
Firm Overview
Together we provide a collaborative, holistic approach to serving clients in the Mid-Atlantic region. For middle market companies looking to create business value with the help of our strategy services, and/or realize value through a merger, acquisition or other transaction, CCA stands ready to guide you through the process and help you achieve your goals.
40+
Closed Tx since Jan. 2020
100+
2024 Valuations
12+
Advisory Clients Exited since Jan. 2021
Corporate Advisory Services
- Strategic Assessments
- Financial Planning & Analysis
- Value Sharing Plans
- Transaction Advisory
- Value Creation Strategy
- Business Valuations
Investment Banking Services
- Sell-Side
- Buy-Side
- Merger
- Recapitalization
- Growth Capital
- Management Buyout
Intel and Cyber News
Companies serving the Intelligence and Cyber Markets encompass a wide range of offerings with a diverse set of skills and market segments. From Artificial Intelligence and Machine Learning to Cybersecurity and support for the war fighter, the people that make up these technology companies are actively involved in national security. Along with these “pointy edge of the sword companies” are support industries in staffing, engineering, finance, and legal, which serve the various needs of this community.
Government Shutdown
During the 2025 government shutdown, intelligence and cybersecurity missions were largely exempt, but the disruption still mattered. Hiring and some acquisition activities slowed, timelines slipped, and information-sharing authorities were impacted. For IC and cyber organizations, the episode highlighted ongoing operational resilience.
FY 2026 NDAA signed
The FY 2026 NDAA, signed December 18, 2025, authorizes over $900 billion in defense policy and funding, boosting cyber budgets and mandating stronger AI security frameworks for weapon systems and software procurement. It expands DoD cyber workforce authorities, accelerates tech innovation adoption, and codifies outbound investment controls. This will result in heightened emphasis on resilient cyber and intelligence capabilities.
M&A Activity
Q4 2025 saw continued M&A momentum in cyber and intel, with dozens of deals completed as both strategic buyers and private equity continue to be active. CCA closed a transaction in the Cyber market, which has not been publicly announced.
AI Procurement
Federal acquisition discourse shifted from experimentation to operationalizing AI responsibly in mission systems, with an emphasis on guardrails for large language model (LLM) buys. This has direct implications for IC contractors building or supplying advanced analytics and automation capabilities.
Ongoing Cyber Threats
The U.S. House Committee on Homeland Security published an updated ‘Cyber Threat Snapshot,’ outlining the heightened threats posed by malign nation-states and criminals to U.S. networks and critical infrastructure since 2024. The federal government shutdown, coupled with the lapse of the Cybersecurity Information Sharing Act of 2015, has significantly constrained the federal government’s ability to coordinate with industry and execute its defensive cyber mission.
U.S. Tech Force
The U.S. Tech Force initiative was launched in December 2025 to recruit tech talent into government roles to modernize federal AI and IT capabilities. The Tech Force will be ~1,000 technology specialists hired by agencies. Through a two-year program, participants will work in teams reporting directly to agency leadership. In collaboration with leading technology companies, participants will receive technical training, engage with industry leaders, and work closely with senior managers from companies partnering with the Tech Force.
CCA Government Services & Defense Indices Stock Performance
- In 2025, the S&P 500 had a strong year with a gain of over 16%, while reaching multiple all-time highs.
- Defense Technology stocks were outstanding performers in 2025 because of increased government spending, innovations in technology, and persistent geopolitical instability.
- Government Services recovered from early losses to end 2025 almost flat. However, this group is down over 20% since the election in November 2024.
How CCA Helps Government Contractors
Chesapeake Corporate Advisors provides a framework for business owners to focus on building sustainable value and to explore their succession and exit alternatives. We use our proprietary tools and methodologies to assess the market and maximize value through strategy.
CCA is a leading investment bank with extensive expertise in mergers, acquisitions, divestitures, and corporate advisory. We use a comprehensive approach to assist clients develop and execute a buy-side, sell-side or recapitalization strategy domestically and in cross-border transactions.
At CCA, understanding shareholder value is at the center of everything that we do. Our analysis considers the feasibility of mergers, acquisitions, divestitures, ESOPs, management buy-outs and recapitalizations. We provide an objective, assessment of value that is deeply rooted in qualitative and quantitative analysis using our proprietary methodologies.
CCA’s Government Contracting team is a blend of Corporate Advisory, Investment Banking, and Government Contracting Executives. We have worked with dozens of companies in projects ranging from Sell Side Investment Banking, to Ownership Alternatives, to Valuations to Boards of Directors.
The CCA Government Contracting Team
Charlie Maskell
Managing Partner
Charlie leads the CCA teams dedicated in assisting businesses enhance shareholder value and position themselves to sell to a strategic buyer, recapitalize with a private equity investor transition through an internal transaction.
Martin O'Neill
Managing Director
CCA clients appreciate that Marty has walked a mile in their shoes, having spent 30 years as a business leader in companies of various industries and sizes before joining CCA as an advisor to middle market businesses.
Michael Zuidema
Managing Director
In leading corporate advisory engagements for our clients, Mike draws on his track record of serving middle-market and privately-held businesses. Mike Zuidema takes an approach that’s proven to achieve results.
Tim Brasel
Managing Director
Tim leads the day-to-day management and execution of many of the deals CCA transacts for its clients. He’s helped lead and guide the sale and acquisition of numerous middle market companies.
Katie Kieran
Director
Katie has advised many middle market business owners on how to create value and optimize the outcome when they’re ready to sell, drawing on her strong analytics, strategic, and financial modeling skills.
Andy Spears
Director
From assisting high-growth market leaders through sale processes to advising companies struggling with cash flow issues, Andy has helped a breadth of companies realize their strategic goals for more than a decade.
Dave Morrison
Director
Dave Morrison serves as a strategic advisor to middle-market business owners, helping them build sustainable value, strengthen financial operations, and strategically prepare for long-term success.
Meghan Smith
Vice President
Meghan focuses much of her time assisting on the development of business valuations and strategic assessments, helping clients create and enhance business value, and developing ownership opportunity plans.
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