Commercial Due Diligence of Leading Business Aviation Fixed Based Operator
Alton was engaged by a leading private equity firm to serve as commercial due diligence advisor on the acquisition of one of the world’s largest FBO chains.
Alton organized seven main areas of focus into three key commercial due diligence workstreams:
- Market Considerations: First, Alton prepared a forecast of market growth by segment and customer category, including Covid-19 recovery trajectory. Detailed analysis was performed on market pricing trends and the future outlook for the same, together with the impact on profit margins. In addition, Alton evaluated disruptive trends and associated risks and opportunities (e.g., extoll, business jet electrification etc.).
- Operational Assessment: Next, we performed network-wide capex planning and lease expiration analysis to quantify required investment. For the largest facilities, Alton prepared localized 10-year traffic forecast and financial projections, market share calculations, lease review and lease modeling, capacity and utilization forecasts (including related growth capex), assessments of pricing for fuel sales, real estate/hangar rental and ancillary services, competitive dynamics and the influence on pricing, and new entrant potential considering airport master plan and available land for FBO development.
- Value Creation Opportunities: Finally, Alton identified and quantified organic services growth opportunities, inorganic acquisition opportunities, and other value creation levers.
Through the engagement, our client was armed with a comprehensive and in-depth assessment of the market opportunity and business, which was leveraged to ultimately drive a completed transaction.