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M&A

Working in partnership with aerospace and defense clients to develop unique strategies for evaluating potential targets, capturing value, and navigating the complex integration process

 

We provide an integrated perspective on value creation and feasibility during all stages of M&A, from ideation to integration, based on our involvement with some of the largest aerospace and defense (A&D) deals over the past five years. We help clients build their internal capabilities so that by the time integration is complete, they will have formed sustainable “M&A muscle” that will serve them well in future deals. Our experts have a deep understanding of A&D issues that can only come from experience within the sector. For each merger or acquisition, we have a clear viewpoint about the strategies that will maximize value.

What we do

Through our work within A&D, we have developed a strong understanding of the sector’s culture and nuances, including the complex customer requirements that overlay any deal, and the financial requirements to create value in a defense context. We help clients:

  • create revenue synergies and identify new product opportunities, including service models driven by digital innovation
  • determine supply-chain synergies—an important benefit in an environment where resilience and security are paramount concerns
  • develop new operating models designed for speed and agility that also reduce costs

Our insights provide clients with solid strategies for negotiating deals. To ensure long-term benefits, we create change programs designed to sustain improvement.

Related Practice

M&A

We know the way to seamless, value-creating transactions
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Examples of our work

Merger strategy

An A&D company was experiencing low growth but had limited M&A options in its core markets. We helped the client articulate and refine a strategy for moving into other areas of the value chain to capture additional value. After assisting with target identification, we worked with the client to understand the potential deal value and strategic fit for each one, and set priorities. The A&D company acquired one of the targets and was able to expand into an adjacent market.

Merger support

Two large A&D companies with complementary OEM product portfolios and aftermarket services wanted to merge. We created parallel integration teams at both companies and provided support throughout integration planning. In addition to creating a new governance model and management processes, we tracked and monitored value creation, defined the financial baseline, and developed synergy targets for each business unit. Ultimately, the client was able to accelerate synergy capture in multiple categories and achieve value that was much higher than expected.

Expansive target diligence

An A&D company had long undertaken many deals to expand into new markets. Working with the company’s global head of strategy, we adapted the existing M&A processes and increased the focus on value creation. For instance, we created a new method for assessing synergies while supporting the client through the potential acquisition of a multi-billion dollar business. Our activities included describing the potential organizational model, including governance and process management.

Carve-out support

A commercial aircraft company wanted to divest a business unit that was highly integrated into the group and received central support for IT, engineering, and many other functions. We helped the client create a new operating model for the business unit that allowed it to function as a standalone entity with its own management accountabilities and reporting lines. The newly independent business was successfully sold to a private-equity company.

Featured Capabilities

Corporate Performance Analytics
Corporate Performance Analytics provides fast, unique and sophisticated insights through an online platform.

Organizational Health Index
Put hard numbers and improvement actions on your organization’s health

OrgLab
A proprietary solution that blends data management, visualization technology, and design expertise to enable successful organization transformations

People Analytics
An advanced analytics tool to help managers and senior talent leaders apply data to identify, attract, develop, and retain talent

Wave
Wave offers a sophisticated user interface, designed based on user feedback, to be fast, intuitive, and collaborative. Learn how easy it is to visualize, prioritize, and track a large volume of initiatives and measure its impact over time.

Featured Experts

Frank Coleman III
Partner
Serves Industrial clients on strategy and M&A, driven by value creation fundamentals and underpinned by complex technology investments
Benjamin Houssard
Partner
Benjamin Houssard serves clients in the industrial sector and especially in Aerospace & Defense and Metals & Mining. He specializes in issues related to strategy and organization and in particular merger management.
Jesse Klempner
Partner
Assists aerospace, defense, and industrial companies with strategy, growth, innovation, and mergers and acquisitions, and consults on diligence, strategy, and portfolio-company optimization for private equity funds
Michael Park
Senior Partner
Coleads the People & Organizational Performance Practice and partners with leaders to shape strategy, improve performance, and drive lasting change by making talent a competitive advantage and establishing an organization fit for the future

Featured Insights

Rethinking inventory management in defense
– Defense companies will have difficulty unlocking cash as their balance sheets become increasingly burdened with unbilled receivables. A new inventory-management approach can help.

The next wave of M&A in advanced industries: Are you prepared?
– This may not seem like a promising time for M&A, but industrial companies that act now may emerge stronger after the COVID-19 pandemic.

Reimagining the postpandemic organization
– The organization of the future is taking shape in the moves that companies are making now. Here’s what’s changing—and why some companies say they won’t go back.

The power of through-cycle M&A
– How companies can use deal making to accelerate strategic shifts during the COVID-19 crisis.

A blueprint for M&A success
– Programmatic M&A can help companies build resiliency, but this approach to deal making requires a solid game plan—one that will guide proactive deal sourcing and opportunistic deal evaluation.

Capturing cross-selling synergies in M&A
– Cross-selling is a leading source of post-transaction revenue synergies, requiring deep commitment and understanding of the opportunity and how to execute on it.

Practice makes perfect: What sets programmatic acquirers apart
– While there is no shortcut to outperformance in deal making, a new survey finds that expert acquirers take a different approach to strategy, deal execution, and integration.

Demystifying deal making: Lessons from M&A veterans
– Two longtime experts in mergers and acquisitions describe what works—and what doesn’t—in corporate deal making, including how to approach the role of activist investors.

M&A success, powered by advanced analytics
– As M&A activity and acquisition premiums hit historic highs, companies can use advanced analytics to increase value and accelerate impact during integration.

How We Help Clients

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