Case Study
Leading pre-M&A due diligence in the European aircraft components market for a mid-market buyout firm
Pre-M&A due diligence | Growth strategy | Comparables (Comps) analysis
Business need
- As part of its growth strategy, a leading mid-market buyout firm was considering potential acquisition of a European aircraft components manufacturer.
- It was keen to develop an understanding of the market landscape, conduct a preliminary due diligence of the target and its engine development programmes to plan its post-acquisition growth strategy.
To understand the aircraft components market and the target company's engine development programmes
The client outlined two key reasons for selecting RocSearch:
- Our ability to rapidly deploy investment advisory teams.
- Our proven M&A due-diligence capabilities and flexible client-centric engagement models
Approach and Methodology
- Our investment research team conducted an in-depth analysis of aircraft bodies, engine types and components value chain. For each stage of the value chain, we mapped out the key competitors and their end-use applications.
RocSearch developed a forecasting model for the global aircraft engine OEMs and maintenance, repair and operations (MRO) markets for wide body, narrow body and regional aircraft.
- We analysed the key technology, business model and supply chain trends shaping the engine components market, the factors driving these trends and the impact of these trends on OEMs (Original Equipment Manufacturers) and MROs.
- We prepared a detailed competitive landscape that mapped the products with their end clients and benchmarked the strategies adopted by leading players.
- The team undertook a detailed trading and transaction comparables analysis, illustrating the prevailing market valuation multiples.
Business outcomes
- The study helped the client prepare a competitive bid for the target’s auction worth over a billion Euros and find relevant regional co-investors.
- A clear view on the emerging business model shifts and growth opportunities for engine component makers.
- The study enabled the investment team to develop key long-term value creation levers and a robust post-acquisition growth strategy.
The study helped the client prepare a competitive bid for the target’s auction worth over a billion Euros and find relevant regional co-investors.
