KippsDeSanto & Co. Research
Advisory Approach
KippsDeSanto & Co. is a boutique investment banking firm focused exclusively on the aerospace, defense, and government services (ADS) sector. The firm operates with a specialized thesis: deep domain expertise in government contracting and defense technology creates superior outcomes for sellers. Unlike generalist investment banks that cover multiple industries, KippsDeSanto's bankers understand the nuances of Federal Acquisition Regulation (FAR) contracts, Defense Federal Acquisition Regulation Supplement (DFARS) compliance, security clearances, and the unique drivers of value in government-contracted businesses.
The firm's advisory philosophy centers on the premise that ADS companies require buyers who understand long-term government contracts, regulatory compliance requirements, and the specialized nature of defense technology. KippsDeSanto's team includes former military officers, government contracting executives, and defense industry practitioners who can credibly articulate value propositions to strategic buyers and private equity firms with ADS focus.
Sector Focus
KippsDeSanto concentrates exclusively on the Aerospace & Defense and Government Services sectors. Within these areas, the firm has particular depth in:
- Defense Electronics & C4ISR: Command, control, communications, computers, intelligence, surveillance, and reconnaissance systems
- Cybersecurity: Network security, information assurance, and cyber operations for government agencies
- Intelligence & Surveillance: Sensor systems, data analytics, and intelligence support services
- Systems Engineering & Technical Assistance (SETA): Advisory and engineering services to government program offices
- IT Modernization: Cloud migration, software development, and digital transformation for federal agencies
- Naval & Maritime Systems: Shipboard electronics, sonar systems, and maritime domain awareness
- Training & Simulation: Military training systems and simulation platforms
The firm does not engage with companies outside the government-facing ecosystem. This hyper-specialization enables them to maintain deep networks with strategic buyers in the defense prime contractor community and private equity firms with dedicated ADS investment mandates.
Deal Track Record
KippsDeSanto has completed over 250 industry transactions since its founding, representing significant experience in ADS M&A. Recent transactions include:
2026:
- Ask Sage, Inc. → BigBear.ai (NYSE: BBAI): $250 million all-stock transaction. Ask Sage provides generative AI and decision intelligence platforms for defense and national security customers. This transaction closed in February 2026 and represents one of the first major AI consolidation deals in the defense sector.
2025:
- Numerica Corporation → Anduril Industries: Asset sale completed January 2025. Numerica provides radar systems, space domain awareness, and sensor fusion technologies to the U.S. Department of Defense and intelligence community. Anduril, a strategic acquirer backed by venture capital, is expanding its capabilities in advanced sensor systems.
2024:
- SyQwest, LLC → CTS Corporation (NYSE: CTS): Sale completed July 2024. SyQwest manufactures naval sonar systems, acoustic sensors, and maritime domain awareness products for U.S. and allied navies. CTS Corporation is a publicly-traded electronics manufacturer with defense electronics capabilities.
- Pragmatics, LLC → Integral Federal: Sale completed November 2024. Pragmatics provides IT systems modernization, cloud services, and software development to federal civilian and defense agencies. Integral Federal is a systems integrator serving the government market.
Additional transactions from the firm's track record include sales of DOMA Technologies, Sabel Systems, ThreeWire, Harmonia, Decision Lens, Omni Federal, and multiple other ADS companies. The firm has worked with strategic buyers including Anduril Industries, BigBear.ai, CTS Corporation, and Integral Federal, as well as private equity firms such as Diversis Capital and Madison Dearborn Partners.
Process & Fee Structure
KippsDeSanto runs institutional-quality sell-side processes tailored to the ADS market. Typical engagement structure includes:
- Retainer: Monthly fee during engagement (credited against success fee)
- Success fee: Modified Lehman or industry-standard percentage of transaction value
- Process timeline: 6-12 months from engagement to close, depending on market conditions
- Buyer outreach: Targeted approach to ADS-specialized strategic buyers and private equity firms
The firm's process emphasizes:
- Preparing quality of earnings that speaks to government contracting metrics (backlog, contract win rates, indirect cost rates)
- Management presentation development that articulates value to defense contractors and government services buyers
- Clearance and compliance readiness ensuring Facility Clearance (FCL) and security requirements don't impede transaction
- Buyer education on unique aspects of the business (FAR contract types, contract vehicles, agency relationships)
Buyer Network
KippsDeSanto maintains relationships with:
Strategic Buyers:
- Prime defense contractors (Lockheed Martin, RTX, L3Harris, Leidos, Booz Allen Hamilton)
- Mid-tier defense companies (Anduril Industries, BigBear.ai, CTS Corporation)
- Government systems integrators (Integral Federal, Mythics, Peraton)
Private Equity Firms with ADS Focus:
- Diversis Capital
- Madison Dearborn Partners
- Veritas Capital
- Carlyle Group
- Cerberus Capital Management
- Arsenal Capital Partners
The firm has completed transactions with over 200 unique buyers across strategic and private equity categories, giving them deep visibility into ADS M&A dynamics.
Competitive Positioning
KippsDeSanto differentiates from other investment banks through:
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Pure ADS focus—The firm works exclusively in aerospace, defense, and government services. This contrasts with generalist middle-market banks that may have an ADS "practice" but lack dedicated expertise.
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Former operators on the team—Multiple Managing Directors have prior careers as military officers, defense contracting executives, or government acquisition officials. This operational credibility resonates with ADS business owners.
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Long-term market relationships—The firm has followed the ADS sector for over two decades, through multiple defense budget cycles, procurement shifts, and consolidation waves. This historical perspective helps in positioning companies for sale.
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Understanding of government contracting nuances—From contract types (Firm Fixed Price, Cost Plus, IDIQ) to security clearances to small business programs, the firm understands factors that drive or detract from value in ADS companies.
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Washington, DC location—Headquartered in Arlington, Virginia, the firm is co-located with many defense agencies, prime contractors, and ADS company headquarters. This proximity facilitates buyer access and market intelligence.
Not a Fit If
KippsDeSanto typically declines:
- Businesses without government revenue or defense contracts
- Companies below $10M in revenue or $20M enterprise value
- Pure commercial technology companies
- Businesses outside North America
- Founders seeking limited buyer outreach or "quick sale" processes
Team
The firm is led by seven Managing Directors:
Kevin P. DeSanto, Co-Founder & Managing Director: Co-founded KippsDeSanto in 2002. Focuses on aerospace and defense transactions. Has led numerous sell-side and buy-side assignments for defense electronics, cybersecurity, and intelligence sector companies.
Bob Kipps, Co-Founder & Managing Director: Co-founded the firm with Kevin DeSanto. Specializes in government services and IT services transactions. Has advised on over 100 ADS M&A assignments.
Marc B. Marlin, Managing Director: Joined the firm in 2008. Focuses on systems engineering and technical assistance (SETA) firms, defense IT services, and intelligence sector transactions. Previously a consultant at Booz Allen Hamilton.
Michael J. Misantone, Managing Director: Specializes in cybersecurity, information assurance, and defensive cyber operations companies. Previously worked at the National Security Agency (NSA).
Karl M. Schmidt, Managing Director: Focuses on naval and maritime defense systems, shipboard electronics, and C4ISR platforms. Former U.S. Navy officer.
Kate Troendle, Managing Director: Specializes in training and simulation, warfighter support services, and defense logistics. Previously held senior roles at defense training companies.
Jon Yim, Managing Director: Focuses on software development, cloud services, and IT modernization for federal agencies. Advises technology-driven government services companies.
The firm has approximately 20-25 total professionals including analysts, associates, and vice presidents supporting the Managing Directors.
Geographic Coverage
Headquartered in Arlington, Virginia (Washington DC metropolitan area). The firm serves ADS companies nationwide but has particular density in:
- Washington DC / Northern Virginia (hub of government contracting)
- California (defense electronics and aerospace)
- Colorado (space and satellite industry)
- Maryland (intelligence and cyber community)
- Florida (military installation presence)
Registration and Credentials
KippsDeSanto & Co. is a registered broker-dealer with the Financial Industry Regulatory Authority (FINRA) and a member of the Securities Investor Protection Corporation (SIPC). Multiple Managing Directors hold FINRA Series 79 (M&A) and Series 63 registrations.