AerCap Holdings NV, which own 350 planes and is the third largest global leasing company in the world, issued a warning this week that Airbus and Boeing are building too many planes. Both Boeing and Airbus are boosting output by about 40% over the next two years, citing demand from emerging markets and the need for developed-nation carriers to replace their aging fleets.
KippsDeSanto & Co. attended the HELI-EXPO convention, the largest rotary-wing gathering in the world, in Dallas, Texas on February 13 and 14. The HELI-EXPO convention offers a unique opportunity to bring companies from along the supply chain – from OEMs to subsystems manufacturers to aftermarket services providers – in one of the most dynamic sectors of the aerospace / defense industry.
This week President Obama released the Budget for Fiscal Year 2013. In it the Department of Defense has requested a total of $613.9 billion – $525.4 billion for base discretionary spending and $88.5 billion for Overseas Contingency Operation (“OCO”) spending.
Mark Amtower, host of Amtower Off-Center on FederalNewsRadio.com, interviews Kevin DeSanto, Managing Director of KippsDeSanto & Co., about the robust M&A market despite the downturn of the economic atmosphere. They discuss top deals from 2011 and the dynamics within those processes, the most sought after industries for today’s buyers, the important steps for companies to best position themselves as acquisition targets, and why service providers are so vital to a transaction.
With the wealth of information, resources, and advisors available to the owners and senior leadership of Federal contractors, it’s important to remember the risk / reward trade-off applies to broader strategies beyond just day-to-day operations.
This week, Europe’s air safety authority (“EASA”) ordered checks to the entire global fleet of Airbus A380 after cracks were found in some of the planes’ so-called “wing rib feet” – the metal brackets that connect the wing’s ribs to its skin. The order extends a previous order for nearly a third of the planes to be inspected. Airbus has announced that they have developed repair kits for the problem and that, despite the cracks, the aircraft are safe to fly.
We had the opportunity to attend the Fairfax Chamber of Commerce – Symposium for Government Contractors in Tyson’s Corner earlier this week. The morning included a number of panels with topics focused on M&A, the impact of private equity, and managing increased oversight – all themes relevant to the growing and emerging government contractor in the space.
While 2011 announced M&A deals was slightly down, the market for companies looking to sell and buyers’ interest in highly strategic acquisitions, was active as ever. At first glance, these seem to conflict; however, the key to the aforementioned is highly strategic.