DCG’s List of Top Defense & Government Services Investment Banks (updated 2025)
If you’re considering selling your company, finding the right advisor is crucial. While many factors come into play, we believe domain expertise stands above the rest. An advisor who understands your industry can effectively tell your business’s story—an essential skill that’s hard to master without deep knowledge of the field. This is particularly true in the Aerospace & Defense and Government Services sectors, which are among the most technical and specialized industries out there.
The size and complexity of this market means there’s no shortage of investment banks and M&A advisors to choose from. However, finding an experienced team that’s willing to work with smaller businesses can be a challenge. Many firms prioritize larger clients due to the high demand for their expertise, leaving smaller companies struggling to secure tailored support.
To address this gap, we’ve compiled a list of the top investment banks in the industry that are committed to working with businesses with an Enterprise Value of $25 million or less.
In evaluating these firms, we considered several key factors: market presence, years of experience, proven expertise in the industry, flexibility to support smaller businesses, and—this may be subjective, but we think it matters—a genuine commitment to their clients and the missions they serve.
Without further ado, here’s our curated list of the top defense-focused investment banks for the lower middle market (in no particular order):
1. G2 Capital Partners (Tyson's Corner, VA): www.gsquaredcap.com
G Squared Capital Partners, based in Tyson’s Corner, VA, has closed $10bn in more than 200 sell-side transactions in the Defense Technology and Government Services markets since its inception in 2020. G Squared’s clients range from entrepreneurs to publicly traded companies, many of which are highly specialized. G Squared Capital Partners provides expertise in M&A/Strategic Advisory, Capital Raises and Business Valuation. G Squared Capital Partners focuses on working with highly specialized companies that deliver differentiated services to their customers – whether supporting DoD, Federal Civilian or Intelligence Community agencies.
2. The McLean Group (McLean, VA): https://mcleanllc.com
The McLean Group, based in McLean, VA, has been operating for more than 25 years across five U.S. offices serving clients with expertise in the Defense/Government, Security, Critical Infrastructure and Maritime verticals. The McLean Group has closed $6bn in more than 145 transactions since 2010 with expertise in Transaction Advisory, Valuation Opinions and Growth Capital.
3. KippsDeSanto (Tyson's Corner, VA): https://kippsdesanto.com
KippsDeSanto & Co., based out of McLean, VA, has closed $17bn in more than 200 transactions with a special focus on growth-oriented Aerospace & Defense Technology firms. KippsDeSanto & Co. has expertise in advising on Mergers, Sell-Side processes and Divestitures.
4. Stout (Tyson’s Corner, VA): Investment Banking | Stout
Stout Investment Banking, located in Tyson’s Corner, VA, offers 25 years of industry focused banking experience to clients across many industries including Aerospace, Defense and Government Services. Stout provides expertise in M&A advisory, Private Capital Advisory as well as other financial advisory services to clients. The Stout team are specialists, not generalists, and are deeply passionate and patriotic about national security and civil service. Many of Stout’s senior bankers hold active security clearances and some have prior experience working at private equity firms or within corporate operations – providing Stout with a uniquely holistic view of what drives value creation and success.
5. Lincoln International (Washington, D.C.) Lincoln International
Lincoln International, operating in the Washington D.C. area, offers 25+ years of experience across more than $8bn in deal value to clients in Defense Technology, Cybersecurity and Government Services verticals. Lincoln International offers expertise in M&A, Capital Advisory, Private Funds Advisory as well as Valuation for clients with a special emphasis on AI/ML, cybersecurity, software & systems engineering, space and geospatial technology services, intelligence analysis and operations and digital IT modernization products and services provided to government agencies.
About Donovan Capital Group: Donovan Capital Group (DCG) is a Washington, D.C. based private credit firm that invests debt and structured equity in Defense & Government Services businesses. Investments range from $5 Million to $25 Million and typical uses include acquisitions, growth, refinancings, recapitalizations, and special situations. To learn more, please visit: www.Donovan-Capital.com.
