Establishing long-term partnership for Aerospace MRO Private Equity Investment

Building strong and lasting relationships with advisors is crucial for successful platform investments, both prior to and after closing. This approach was put into action when one of our clients approached us with the aim of venturing into the Aerospace (Aero) Maintenance, Repair, and Operations (MRO) and aftermarket parts supply market.

Expedited Sourcing of Aerospace Experts for CIM Review and Management Meeting Attendance

In order to ensure a successful investment process, it was essential for our team to gain a comprehensive understanding of our client’s diligence requirements. As a first step, we conducted a consultative intake call that addressed all aspects of the thesis and target company.

During the call we learned that our client’s initial interest in the aero MRO industry stemmed from witnessing other PE firms successfully executing rollup investments in the space. In exploring the market, they identified a target company that primarily dealt with providing parts and conducting maintenance work on cargo planes which was family/founder-owned and seeking a partner with industry expertise and strategic vision to aid in its expansion.

The owner asked for a meeting with our client within a week, but since aerospace was a new investment sector for our client, they required an experienced former operator who could review the CIM, attend the management meeting to speak to maintenance cycles, market outlook and the competitive environment.

Apex Leaders researchers were determined to find expertise to match our clients’ needs. We sought senior C-suite executives who previously served at major MRO parts and service companies, as well as former executives from major airlines.

Within 10 business hours Apex Leaders presented multiple advisors, including:

• Former President & CEO | AAR Corp
• Former President & VP MRO | Wesco Aircraft
• Former President MRO Services | TIMCO Aviation Services
• Former VP & GM | Premier Aviation Overhaul Center, former COO | Aviation Technical Service
• Former President Air Repair & Engines | Triumph Group, GM Aircraft Base Maintenance & Supplier Operations | Delta Air Lines

To make the most of their limited time, our client decided to connect with three industry experts recommended by Apex Leaders who were an exact match for their needs. After speaking with all three, our client was impressed by their expertise and rated them all as excellent. Following these initial conversations, our client shared the CIM with two experts for further review and discussion before the management presentation.

Our client decided to bring one of the most esteemed operators to the management meeting after working closely with the previous executives. Their expertise, insights, and ability to validate the client’s strategy proved to be essential for the success of the presentation. And an ongoing partnership emerged between our client and the industry expert.

Roughly a month after the management meeting, our client was preparing to submit an LOI. However, they wished to consult with three more of the former executives that had been presented initially before doing so. These discussions gave our client the assurance they were required to proceed with the acquisition.

Partnership Paves the Way for Successful Platform Acquisition and Company Growth

Thanks to the advisor’s guidance, our client was able to secure the platform investment with ease. The executive who attended the original management presentation has since become an independent board member and has played a crucial role in implementing the investment strategy. This has led to more partnerships with airlines, networking opportunities, assistance with add-on diligence and integration work, and much more. Our client acknowledged that without this partnership and the attendance at the management meeting, acquiring the company wouldn’t have been possible.