M&amp;A

Aerospace & Defense

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
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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
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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.

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8.2.2

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What we do
8.2.2

Related Practice

M&A