Due-diligence on the aircraft component market and potential target
For a leading mid-market buyout firm
- The client was conducting preliminary due diligence of an aircraft engine components manufacturer.
- It wanted to develop an understanding of the aircraft components market landscape and of the target’s engine development programmes.
To build a thorough understanding of the aircraft components market and the target’s engine development programmes for supporting the client’s post-acquisition growth strategy
The client outlined two key reasons for selecting RocSearch:
- Our ability to rapidly deploy customised teams with the necessary skills
- Our proven due-diligence capabilities and flexible client-centric engagement models
Approach and Methodology
- Our team of private equity analysts conducted an in-depth analysis of aircraft bodies, engine types and the engine components value chain. We mapped out the key competitors and end-use applications for each stage of the value chain.
RocSearch developed a market size estimation model for the global aircraft engine components original equipment manufacturer (OEM) and maintenance, repair and operations (MRO) market for wide body, narrow body and regional aircraft and forecast the market for the next 10 years.
- We analysed the key trends for technology, business model and supply chain that were shaping the engine components market, the factors driving these trends and the impact of these trends on OEMs and MROs.
- We prepared a detailed competitive landscape that mapped the products with their end clients and benchmarked the strategies adopted by the leading players.
- The team undertook a detailed trading and transaction comparables analysis, illustrating the prevailing valuation multiples in the market.
- Trend analysis highlighting various business model shifts and growth opportunities for engine component makers, which supported the investment team’s post-acquisition growth strategy
- Analysis of prevailing valuation multiples in the sector
The study enabled the investment team to develop key long-term value creation levers and a robust growth strategy.