SUCCESSFUL M&A THRU FINANCIAL DUE DILIGENCE
Successfully seizing a great opportunity doesn’t happen by accident. It requires knowledge and leadership. Prior to writing a check, one needs due diligence and analysis in order to determine they are making a profitable investment.
A private equity firm was considering the acquisition of certain aircraft MRO assets located in Europe. The firm was against a tight deadline to determine the viability of the acquisition. The investment group turned to Rothers Capital for answers.
Rothers Capital prepared a detailed, independent analysis and comparison of the historical and current performance trends, to include costs, revenues, margins, as well as the noteworthy influences for this specific MRO market and region. The analysis also included long-term outlooks for the performance of the assets based on specific drivers that had influenced the past, and may affect the future.
Rothers Capital submitted its analysis to the company in late Q1 of 2011. In early Q2 of 2011, the company bought the MRO company. From the purchase of the company through the end of Q3 of 2011, the client generated a gross margin of US $4.2 million on operating expenses of US $1.1 million. Rothers Capital’s analysis was instrumental to completing the acquisition. Upon receipt of the Rothers Capital report, the client noted that the analysis was what they needed to make the decision and to make the acquisition successful.