The impact of the lockdown on commercial aerospace has been rapid and severe. Thus far the demand shock on defense has been limited but there is little reason to believe that defense will be spared, given the severity of the economic downturn. For now M&A markets are muted, but we believe the slowdown will be short-lived. Deal making in aerospace and defense will resume—likely driven by portfolio reshaping, divestitures and more activity by financial sponsors. As in prior downturns, there will be exceptional opportunities for M&A players who adapt quickly to the realities of the new industry landscape.