CASE STUDY

Due Diligence Support

Due Diligence Support

One of the earliest assignments undertaken by ETL was occasioned by our considerable knowledge of the aerospace market, and our extensive connections with the private equity & venture capital industry.  The task was to identify, at a high level, the growth potential of a large UK based international aerospace company so as to provide the client with alternative information and lateral thinking on the market, and on the relevant position of the potential acquisition within it.  The client was a well know venture capital company; the ETL Lead was undertaken by Jason Crabtree, supported by Adrian Jones and Michael Smith.

The company in question had a history many decades long, but the business and trading model that was in place at the time was the result of a strategy which commenced at the turn of the century and involved a combination of organic growth and international acquisitions.  This had resulted in an annual growth rate of well into double figures for many years.

ETL provided the client with a detailed market assessment in relation to the company’s principal competitors world-wide and, as requested, sufficient but more limited detail in relation to the remaining competitors.  Furthermore, having provided a comprehensive SWOT analysis of the company itself based upon a strategic market view, we then provided comment on the company’s organic growth expectations in the light of its current business profile.  This was followed by our opinion of the company’s opportunities for increased growth in the relevant segments of the aerospace market, how they might be pursued, and our estimate of the likely results. 

Regarding acquisitive growth, ETL provided six examples of value-enhancing acquisitions taking account of product range, market sector and geography, detailing as we did so the reasoning behind our comments which included our knowledge of those companies’ circumstances, apparent intentions, opportunities and limitations.

The conclusion we drew was that the potential acquisition was well positioned to grow for many years to come; it enjoyed entrenched positions within a number of robust and growing supply chains.  However, we believed it would find it very difficult to replicate the size and nature of its relationships with its principal customers if applied to the latter’s major competitors due to the dynamics of their situations being very different including specifications of product, geography of manufacturing, and well defined positions already established in the market.

With all the above in mind, therefore, we advised that if the client decided to buy the company they should look further than existing activities if growth rates beyond Management’s projections were to be achieved.  In doing so we highlighted several areas that, in our opinion, should be considered in respect of organic growth; and identified, as examples, six potential acquisition targets we considered suitable for further evaluation.  Each of the latter was suggested, not simply as part of a bolt-on strategy, but more from the perspective of providing the company with appropriate fresh sectors to advance into once combined with the already considerable capabilities it possessed.  

In the words of the client: “This was a most valuable and knowledgeable report which played an important part in our decision making regarding the potential acquisition”.

The end result being that the client tabled an offer in excess of £100 Million.

Mergers, Acquisitions & Disposals Case Studies

Asian Acquisitions

In the late Spring of 2018 ETL was asked by one of our established European clients to help them undertake an acquisition in Singapore, a global finance, commerce and transport hub and, with the latter in mind, a focal point for aviation and aerospace in Southeast Asia.

The End Goal

Later this year, having started in 2016 to assist a very high-quality machining company transit a temporary aerospace downturn and, thereafter, grow substantially in terms of increased customers, orders, sales revenue and profit, ETL, led by Jason Crabtree

Search, Advise & Build

Because of the Directors’ deep knowledge of, and extensive contacts within, the Aerospace & Defence industries, plus personal business and financial responsibility at International Board level, ever since launching ETL in 2015 the Consultancy has been approached

Getting to “Yes"

Introduced by Michael Smith following a networking evening, in early 2016 ETL held a meeting with the owner of an electronics distribution company providing components to many of the major names in the aerospace and defence industries on both sides of the Atlantic

Due Diligence Support

One of the earliest assignments undertaken by ETL was occasioned by our considerable knowledge of the aerospace market, and our extensive connections with the private equity & venture capital industry.  The task was to identify, at a high level, the growth potential

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