Buy-Side Due Diligence of a New-to-Market Business Jet Manufacturer
A financial investor had entered into exclusive discussions with a new-to-market business aircraft manufacturer and engaged Alton to provide preliminary due diligence on the target, including an assessment of the business aviation market, the competitive landscape, as well as advice on whether to move forward with the investment.
Our Approach
Alton set out to develop a fulsome assessment of the target in the context of the broader business aviation market, leveraging its deep and decades-long sector expertise and experience. approach included three key tasks:
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Business Jet Market Analysis: A fulsome assessment of the target in the context of the broader business aviation market, leveraging Alton’s deep sector expertise and experience, which included:
- Identification of major risks and provided expertise on key topics based on understanding of the target and its management presentation
- 15-year forecast on business jet demand; and
- Confidential market sounding to assess receptivity to the segment broadly and the proposed target’s product in particular
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Competitive Landscape Evaluation: An in-depth analysis of the many stakeholders impacting the target, including:
- validation of management’s view of the target’s positioning within the competitive landscape;
- an independent assessment of competing market entrants, and an outside-in assessment of their relative viability;
- evaluation of the target’s key suppliers and associated risks;
- financing considerations and the impact on market acceptance vs. competitors; and
- elucidation of lessons learned from successful and failed new entrants in the business aviation market
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Viability Assessment: Thorough examination of target’s technology and business plan, including:
- assessment of major risks and potential mitigations;
- assessment of the strength of management team and its ability to articulate, and execute against, its business plan;
- review of reasonableness, projections and growth underpinning the target’s plans;
- evaluation of aftermarket revenue capture plans, and assessment against industry best practices; and
- COVID-19 impacts on company trajectory
Successful Outcome
The client was armed with a comprehensive and in-depth assessment of the opportunity which was leveraged to ultimately drive their investment decision.
