Success story | Due Diligence of a Tier 1 parts manufacturer in aerospace

Due Diligence of a Tier 1 parts manufacturer in aerospace

CHALLENGE

Our client in the aerospace industry is willing to acquire new specific production capabilities to reduce costs and secure its supply chain. Several potential targets for acquisition have been identified and analyzed.
After a letter of intent signature, a Due Diligence is launched on a tier 1 parts manufacturer with tens of millions of turnover.

SOLUTION

The solution implemented was 3-fold:

1. Frame the Due Diligence:
   Identify the main workstreams to be tackled in line with the target activities and our client strategy: Finance, Manufacturing/operations, supply chain, HR, IT and Environment
   Set up a data room and gather needed documentations
2. Lead each stream in parallel through a weekly cycle including: Documentation analysis, Q&A sessions with the target’s team, deep dive with client’s expert to validate analysis
3. Formalize and validate the recommendations, focusing on potential deal breakers, strategic fit and target valuation

KEY DELIVERABLES

• Deep understanding of the targeted company on the financial, manufacturing, supply chain, HR, IT and environment status

• Final recommendation not to buy due to too high risks given the selling price and limited strategic fit

• Alternative way forward to acquire/develop the same capabilities than the initial target