When considering the sale of an aerospace or defense-related manufacturing company or a partnership to facilitate growth, the most important thing to remember is that experience matters and can dramatically impact the results.
Check out these successful sales of aerospace and defense-related manufacturing companies:
Manufacturer, Designer & Molder of Complex Tooling, Molds & Processes for Aerospace & Defense Industry Giants
Accelerated’s client developed paradigm-shifting technologies for the production of Ceramic Cores, Investment Casting Tooling, and proprietary methods for radical improvements in manufacturing cycle times. These industry-disruptive technologies are changing how gas turbines are made, allowing for highly complex geometries that were previously impossible.
Although the technologies were sought after by some of the largest jet engine manufacturers in the world, the best choice for this client was a partnership with a customer for whom the technologies were developed. Pratt & Whitney, a division of RTX, concluded the acquisition with two members of the client’s management team.
This allowed the majority shareholder, founder, industry veteran, and developer of the technologies described above to achieve the desired exit while creating a new opportunity for the others in the management team. With this new partnership, the company’s stakeholders, employees, suppliers, and existing customer base have a bright future, and we’re very proud to have facilitated it.
Valuing companies with industry-disruptive technologies and navigating competing shareholder interests and desired exit timelines are core strengths of Accelerated Manufacturing Brokers, Inc.
Patented Aerospace & Defense Screw Machine Products Manufacturer
Here’s what happens with an M&A specialization in manufacturing. We launched our campaign in mid-April and hosted buyer visits over a two-week period in May at the client’s Midwest location. By the end of the first week of June, we received 12 offers from quality buyers nationwide. The deal closed in mid-August, four months from start to finish. The buyer will take the client’s patented products into new aerospace platforms worldwide. We’re thrilled to have facilitated this transaction and made life-long friendships in the process.
Defense Contractor & Specialty Machine Manufacturer
It was an honor to be entrusted with the sale of an 80-year-old, second-generation defense contractor who was a Tier I provider to Northrop Grumman, Lockheed Martin, GE, and General Dynamics. Our challenge was finding a buyer who was not only financially qualified but also had the professional chops to work with difficult tolerances and hard-to-cut metals.
The acquirer had to have a proven history such that the iconic customers would welcome the continuity of the relationship and LTAs. We nailed it because difficult is what the AMB Team is good at!
Aerospace & Medical Instrument Component Manufacturer
With two LOIs submitted on this business, we’d found the perfect buyer for our client. However, with a 65% customer concentration, 12 acquisition lenders turned the deal down. We referred the buyer to one of our national lenders who understands the aerospace industry, in which it’s almost impossible not to have a concentration. This business had two shareholders, one wanting immediate retirement and one wanting to continue working. We got them BOTH what they wanted.
Manufacturer of Braking System Components for Military Aircraft
This company had four wildly different valuations before coming to Accelerated Manufacturing Brokers, Inc. Our valuation was 25% higher than the next highest. This was the result of understanding the difficulty of what they were manufacturing, who they were doing it for, and how difficult it would be to replace them. We looked at over 175 different data points to determine the value, including certifications, company culture, LTAs, and more. The highest offer we achieved was 35% higher than our valuation due to the competition created for the acquisition.
Aerospace High-Pressure Valve Manufacturer
Our client was an award-winning manufacturer of specialty high-pressure valves and fittings for the aerospace and defense sectors. The Company boasted both AS9100 and NADCAP certifications and had over 3,000 products that were DOD-QML, QPL qualified, and listed.
We vetted over 300 potential acquirers. Only five were granted visits, and all five submitted offers. Our client’s employees are now part of a larger organization with growth opportunities they would not have otherwise had. The buyer has committed to remaining at the existing location long-term. This, coupled with a great price, made for one very happy client.
Conclusion
These are just a few examples of our incredible success working with aerospace and defense-related manufacturers. Our client companies were located throughout the United States, ranging from coast to coast.
In every instance, these companies were sold to those with deep, relevant manufacturing experience, not to fund managers. They are all still in business, thriving, and growing. Some of them sold for millions beyond what our clients hoped for. The results we achieved were the result of over 30 years of selling nationally and exclusively within the manufacturing sectors.
Experience matters when selling aerospace and defense-related manufacturing companies.
To learn more, schedule a confidential, no-obligation consultation HERE.