Despite the COVID crisis, the aerospace industry has witnessed huge growth in the recent years and there have been significant developments made in it. In the last decade alone, we have have seen massive changes that are taking place in all the fields and aspects of aerospace industry. Many startups and already established companies are coming together in order to improve and provide better technology and innovations into this field. The aviation and aerospace industry has a bigger role to play in the coming years. However, in order to bring new innovations, inventions, sustainable and sophisticated technology, consequent investments are required.
Without the financial push, it is impossible to get the work done and improve the sector. New startups cannot function and successfully fulfill their agendas and objectives. So, in this article we will be discussing about The process of buying and selling aerospace businesses.
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Merger & Acquisition in the Aerospace & Defense Market
One of the most commonly soughted after business strategy in the aerospace industry is merger and acquisition. A lot of companies around the globe who have a huge turnover and big names for themselves, use this strategy in order to to benefit their own business and grow faster than the rest of the competition in the market. One of the best reasons why the strategy is so much popular is because it allows the big names of the industry to acquire creative and professional experts from the market. Hence, allowing them to work even better and getting a larger share of the aerospace industry.
In any industry, organic growth and inorganic growth plays a huge part in the overall success of a company. Organic growth takes a lot of time to make a company successful and is a far more natural process than the latter. In case of inorganic growth, in this instance, merger and acquisition strategy, allows a company to improve and build up their portfolio faster.
Acquisitions in the aerospace industry can be of different kind and of different things. Companies look for acquiring better technological innovation, creativity and knowledge in order to fulfill their demands at the highest level. However, merger and acquisition has some disadvantage under it’s bag as well. A wrong acquisition can hit a company really bad. It can cripple the financial and managing structure of the company in a negative way big time.
Why to buy an Aerospace Business?
As we have already mentioned, the aerospace industry has transformed into a huge sector over the last 10 – 15 years. The airplane business has seen a highly cyclical and volatile growth chart. With globalization, people started to travel to different parts of the world and that is why air travel become more and more popular. We have already seen by 2020, that people prefer to travel via airplanes for most part of their life. Traveling by air is much faster, more comfortable and convenient. The demand for manufacturing more aeroplanes and aerospace equipment over the years shows the popularity for an aerospace business. Big names in the industry like Boeing and Airbus have upcycle of deliveries every year and it remains very strong. The global aerospace industry was already worth $838 billion back in 2017 and the numbers only increased, making it one of the most lucrative industry to invest your money on.
What are types of aerospace business?
If you are planning to invest or acquire an aerospace business in 2020, then you must be aware of the different businesses that are present. Take a look at this list where we discuss about the several aerospace businesses.
- Component Manufacturer (Tier 3 Level) – these are the companies which make different components for aerospace products. These companies include Arconic, Bombardier and United Technologies.
- Part Manufacturer (Tier 2 Level) – Lockheed Martin, General Dynamics, BOEING are the top part manufacturers in the industry. They manufacture and produce different parts for aerospace technology and equipment.
- System Manufacturer (Tier 1 Level) – system manufacturers are the top level companies which design, create and manufacture different systems for aerospace and aviation technologies.
- Aircraft Manufacturer (OEM) – as the name suggests, you can understand that these companies are responsible for making aircrafts of different kinds.
So, here are some of the different aerospace businesses that you can choose to acquire. All of them hold their own kind of importance and that is why you will need to research and know about them very clearly before investing in them.
What is a business broker?
If you doing business for sometime now, then you must have at least an idea of who a business broker is. Isn’t it? A business broker is a highly trained and experienced professional who helps the people to sell and buy different businesses they want to. Every industry in the world has business brokers in it who facilitate the transaction between clients and buyers. They have huge role to play in the overall merger and acquisition strategy as well. Brokers offer valuable guidance, advice and different other resources for facilitating a smooth and hassle-free transaction over the course of time.
Business brokers undergo years of training and self-learning in order to acquire the skill of buying and selling different businesses to others. It helps companies and individuals to save a lot of their time and resources. Brokers have well connected networks with other professional financiers, accountants, attorneys, businessmen, and various other people. In the light of the seller, a business broker can put together the overall marketing package and make them decide which offer they should go for and which one will benefit them the most. In terms of the buyer, a broker introduces them to genuine and interested buyers or investors. This allows them to pitch their ideas and bring forward what they want to sell at the right place.
Business brokers in the aerospace industry can help you find good startups and newly formed companies who hold significant potential. They help you to identify which companies are going to achieve new heights in the future and allow you to make a wise decision regarding your investments. If you are planning to acquire an aerospace business, then you must get hold of a good business broker in the very first place.
Best aerospace business broker listing
In today’s world, all of us are connected in some way or the other. There are several aerospace businesses that are available for sale in different parts of the world. If you want to buy one of those promising aerospace companies, then you must check a reliable aerospace broker listing. Here are top aerospace business broker listing.
- BizQuest – BizQuest is one of the oldest aerospace business broker listing established in 1994. Their mission is really simple and that is to connect different brokers with the potential and genuine buyers around the country. They have a huge inventory of over 30,000 businesses and a robust directory. Their mobile and desktop websites are visited by hundreds of viewers every day.
- GlobalBX – if you cannot find an appropriate broker and business, then it is high time that you visit GlobalBX website and check out their huge inventory from the available market. They have over 6000+ registered business brokers from different industry that includes aerospace as well. You can also go through their valuable directory and resources to get amazing tips.
- Smergers – simple and smart way to get hold of genuinely interested buyers and sellers through verified profiles is Smergers. They have an amazing portfolio that allowed them to connect a lot of brokers with potential clients. You can visit them and go through the seamless website for huge opportunities.
So, here are the top aerospace business broker listing websites where you can get hold of some aerospace acquisitions Opportunity. All of them are popular and have thousands of visitors every day, making them highly reliable around the world.
Finding the right company to buy is usually harder and required to have your own contracted expert to find the best company for you. This can be particularly useful if your goal is to buy a company in a foreign country in order to grow in its domestic market.
Buying or selling an Aerospace company
Willing to buy or to sell an Aerospace or Defense business and you need some advices? Looking for a person with extensive knowledge in the Aerospace & Defense market and that have the experience in Merger & Acquisition in your local area?
Aerospace Export regroups experts from all location with all type of skills (sales rep, M&A consultant, lawyers, government officials,..). We specialized in supporting the organic and external growth of Aerospace & Defense companies. Our experts could be helpful so please don’t hesitate to contact us.
AerospaceExport Job Application Service
AerospaceExport Job Application Service is an easy way to send your application to hundreds selected companies (including Boeing, Safran, Airbus, GKN, …) in one simple process.