His subject: "Advanced Maneuvers: How to Gain the Advantage in a Consolidating Aerospace Industry." Rising demand for aircraft around the world is creating a boom-time environment for primes such as Boeing and Airbus, along with the longer tail of systems, components and materials suppliers.
As a result, the entire industry is consolidating and competition for deals has been fierce.
The challenge is to identify and validate these opportunities early in the evaluation process.Flight Plan for Success While the dynamics of a consolidating industry and high transaction multiples create a challenging deal environment, companies prepared to push the envelope – through both sub-sector acquisition strategies and plans to enhance their targets’ business models – stand to capture the greatest value in this competitive market. Such concerns prompted President Woodrow to take action, resulting in the establishment of NASA Langley....To this end, senior executives will need to forecast where the aerospace industry is moving, identify the key inputs or capabilities that have not already consolidated, and then run roll-up strategies.Time is a critical factor, as waiting too long will likely reduce your options and increase the asking prices for the remaining companies available.It is crucial that we find ways of preventing such fragmentation, at both ends of the continent.
If we fail, history will pass a deservedly harsh judgment upon us all.So, back to the question: Why has white smoke not emerged from the Brussels Group yet?After all our government and the institutions already agree on a great deal: So, we agree on all this.As the M&A game plays out, a company can create real value if it is the only player capable of making a key component from a particular material or to a particular spec.This will require firms to move beyond targeting companies individually and devise broader strategies that involve multiple targets to grow and reach a critical scale in key areas.We've talked a lot about our consolidating industry in this space, but here's a guest editorial by Darren Perry, a VP at L. Spurred by primes looking to consolidate their supply bases, aerospace players across the value chain are turning to mergers and acquisitions (M&A) as a way to shore up competitive positioning, achieve growth targets and enhance margins.