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PRIVATE EQUITY INVESTING
In Aerospace & Defense Companies
September 10, 2019 @ 8:00 am - 5:00 pm
Where to Balance Success
& Risk When Valuations Are Hot
Private Equity Investing in Aerospace & Defense Companies
It’s full speed ahead in 2019 for the aerospace and defense industries — which are both coming off stupendous year-earlier results —
- Highest industry-wide revenue ever, at $760 billion, and highest operating profit ever, at $81 billion.
- In commercial aircraft, record large deliveries and backlogs.
- In defense, increased government spending amidst rising geopolitical tensions causing the top six defense contractors to report a 12% increase in revenue.
Opportunities for middle-market PE investors are expected to continue trending up for lots of reasons, e.g.,–
- Mega-transactions such as the merger between United Technologies and Raytheon are creating spin-offs to satisfy antitrust requirements and cause players to reposition to stay competitive.
- Cost-cutting measures like Boeing’s “Partnering for Success 2.0” are driving consolidation by pressuring suppliers.
- PE firms are acquiring companies in recession-resistant sectors like replacement parts.
- Plane-makers need advanced tech materials to build planes that are lighter, stronger, more fuel efficient and safer, as well as automated systems that require less of pilots.
- Companies continue to use technologies like hypersonics and C4ISR — Command, Control, Communications, Computer, Intelligence, Surveillance, and Reconnaissance.
With high valuations, tariffs, and the prospect of an economic slowdown looming, middle-market private equity investors will need to do their homework to understand which companies are a good match for their strategies, so they can win lightning-fast auctions and implement operational discipline and roll-up strategies quickly.
Roll-ups in particular have proven to be a way to generate good returns even after paying up for a deal — deals worth less than $100 million are getting done at around 7 to 7.5x ebitda, but for deals north of $1 billion that rises to around 11.5x ebitda.
Moelis & Company
Tuesday, September 10, 2019
8:00am – 5:00pm
Midtown Manhattan, NY
Register now to gain valuable insights as 20-plus speakers assess the outlook
for aerospace and defense at this Capital Roundtable full-day conference, taking place on Tuesday, September 10, in Midtown New York City.
Three Key Reasons Why You Should Join Us
- Discuss how to increase margins and productivity through operational discipline and roll-up strategies.
- Hear the outlook for defense budgets after the 2020 US elections.
- Understand the implications of an economic downturn for portfolio valuations and hold times.
- What’s hot and what’s not in defense, commercial, and business aerospace, and government services
- Whether or not jet leasing companies are in a bubble
- How changing defense priorities will trickle down the supply chain
- How to win companies in fast auction processes
- The outlook for valuations
- Achieving multiple expansion through roll-ups
- How tariffs may impact the aerospace and defense supply chain
- What kinds of companies will outperform in a downturn
- How private equity can best access the aftermarket
- The outlook for the budget control act, which constrains defense spending unless waived
- Managing the uncertainty of new program introductions after the Boeing 737 Max sidelining
- How global regulatory bodies may step up oversight after the Boeing 737 Max problems
- The economic outlook for Asia, the source of much potential air traffic growth
- The Carlyle Group and Stellex Capital Management have agreed to buy Portland, Ore.-based Vigor Industrial, a defense and maritime services firm. It will be combined with Stellex-owned MHI Holdings to form a combined ship repair and fabrications services company.
- Acorn Growth Companies acquired DIMO Corp., a Newcastle, Delaware-based distributor of parts for aircraft systems.
- Consolidated Precision Products Corp., backed by Warburg Pincus, agreed to purchase the Cast Products business of Allegheny Technologies.
- Arlington Capital Partners agreed to the carve-out acquisition of Triumph Group’s forming and fabrication facilities.
- Greenbriar Equity Group provided equity to STS Aviation, a Jensen Beach, Fla.-based aviation solutions company.
- Greenbriar Equity Group and First Aviation Services Inc. acquired DART Aerospace, a provider of equipment and aftermarket components for the helicopter and fixed-wing industries.
- Resilience Capital Partners acquired Concord, California-headquartered Systron Donner Inertial, a supplier of quartz microelectromechanical systems used in products that provide precision guidance, navigation, and locational solutions. It sold within six months to Emcore for $25.8 million.
- Vopne Capital invested in Coronado Manufacturing, a Sun Valley, California-based maker of precision-machined components for the aerospace industry.
- Family offices Willcrest Partners and Curran Companies recapitalized Phoenix-based Precision Aerospace LLC, a maker of complex metal assemblies for aerospace and industrial applications.
- Shorehill Private Equity-backed Tribus Aerospace acquired Eastlake, Ohio-based Midwest Precision Holdings Inc., its fourth add-on.
- Trive Capital acquired Newark, Calif.-based California Brazing, a maker of components for space, aircraft connectivity, specialty electronic, and various defense applications.
Azad Badakhsh is a managing director at Moelis & Company, where he focuses on advising clients in the aerospace & defense sectors. He has over 15 years of investment banking experience advising industrial and aerospace & defense clients on buy-side and sell-side transactions and a variety of other corporate finance matters. He joined the firm as a vice president, later taking on the titles of senior vice president and managing director. Prior to joining Moelis & Company, he was a director in the mergers & acquisitions group at UBS Investment Bank.
Azad earned a B.S. in Economics with concentrations in finance and accounting from The Wharton School at the University of Pennsylvania.
This Capital Roundtable conference in midtown, New York City, is all-business, all-targeted, all-designed to be a completely focused day of practical information and revealing insights about aerospace and defense companies. You’ll gain valuable insights from —
- Three informative panel discussions
- Two revealing keynote presentations
- Real-world perspectives from company investors
- Industry outlooks from noted sector experts
- War stories and lessons learned from experienced hands
- Azad Badakhsh, Managing Partner, Moelis & Company
- Burt Alimansky, Chairman & CEO, The Capital Roundtable
- Bruce Breckenridge, Chief Executive Officer, Enjet Aero
- Ronald J. Epstein, Managing Director, Bank of America Merrill Lynch Global Research
- William Farmer, Managing Dir. & Head–Aerospace & Defense, Stifel Financial Corp.
- Nick Fazioli, Managing Dir. & Head–Commercial Aerospace & Aviation, Jefferies LLC
- Nicholas A. Janneck, Principal, Vance Street Capital LLC
- Colin Keenan, Managing Director, Brightwood Capital Advisors LLC
- Douglas J. Knoch, Managing Director, Shorehill Capital LLC
- Mac LaFollette, Founder, GC Companies
- Tess Oxenstierna, Managing Director, Capstone Headwaters LLC
- Steven Rosen, Co-Chief Executive Officer, Resilience Capital Partners
- Noah Roy, Managing Partner, Greenbriar Equity Group LP
- Robert Schneier, Dir.–Corporate Development & M&A, Elbit Systems of America
- Gregory C. Starkins, Managing Director, Moelis & Co.
- Jeffrey C. Weber, Partner, DC Capital Partners LLC
- Dylan Wolin, V.P.–Strategy & Acquisitions, AAR Corp.
- Jay Wynn, Managing Dir. & Co-Founder, Fairmont Consulting Group LLC
7:30am – 8:30am
Networking & Registration & Breakfast
8:30am – 9:00am
Welcoming Remarks & Audience Self-Introductions
9:00am – 9:30am
Conference Chair’s Introduction —
- Azad Badakhsh, Moelis & Company
9:30am – 10:15am
Morning Conversation —
Best Strategies for Managing Risk & Driving Returns When Valuations Are High & the Economy Is Slowing
10:15am – 11:00am
Networking & Coffee
11:00am – 12:00pm
First Panel —
Deal Making in Aerospace Companies — How Advancements in Engines, Interiors & Other Emerging Areas are Impacting Investors
12:00pm – 1:00pm
Networking & Luncheon
1:00pm – 1:30pm
The Case (Or Not) for Investing At Different Stages in the Aerospace & Defense Sector Cycles
- Ronald Epstein, Bank of America Merrill Lynch Global Research
Interviewed by —
- Gregory C. Starkins, Moelis & Co.
1:30pm – 2:30pm
Second Panel —
From IT to Engineering Services — Why PE Interest in the Government Services Sector Is Growing
2:30pm – 2:45pm
Networking & Dessert
2:45pm – 3:30pm
Afternoon Conversation —
Modernization vs. Sustainment — Impacts on Life Extension on Both Commercial & Military Aircraft
3:30pm – 4:30pm
Third Panel —
Opportunities in C4ISR Companies – Where It Makes Sense to Invest
Networking & Adjournment
Space at this conference is limited, so register as soon as possible to assure yourself a seat. To avoid disappointment, please contact Chris Agar today to confirm your attendance at 212-832-7300 ext. 0 or firstname.lastname@example.org.
Please note that Capital Roundtable limits the number of registrants from a single firm to three.
Best Rate – Early Registration
Save $300 off the standard fee of $1,495 when you register by Friday, July 26. Just $1,195.
Save $200 of the standard fee! Register by Friday, August 16, and the fee for the conference is $1,295.
$1,495 increasing to $1,595 day of conference, space permitting.
$1095 each until Friday, August 16, when you register two or more people to attend from the same company. This rate increases to $1295 each after Friday, August 16.
You can pay by credit card (using the links above or below) or by check. Mail your check and business card to: New York Business Roundtable Inc., 747 Third Avenue, Suite 200, New York, NY 10017.
Can’t attend but want to hear the program? You can buy the audio package along with the handounts.
This event is sponsored by:
Acorn Growth Companies
Ally Corporate Finance
Aviation Week Network
Baker & Hostetler
Blue Wolf Capital Partners
Bradley Arant Boult Cummings
Brightwood Capital Advisors
CIT Bank NA
Davis Wright Tremaine
Deloitte & Touche
Durational Capital Partners / Navy SEAL Foundation
G2 Capital Advisors
Graham Partners Inc.
Greenbriar Equity Group
Hammond Kennedy Whitney
HCI Equity Partners
Kinsale Capital Partners
Liberty Hall Capital Partners
Moelis & Co.
Odyssey Investment Partners
Renaissance Strategic Advisors
RFE Investment Partners
Robert W. Baird
Sentinel Capital Partners
TD Bank NA
Turtle Reef Holdings
U.S. Dept. of Defense
Vance Street Capital
Veritas Capital Fund Management