Business case
Our client, an aircraft component manufacturer, experienced a challenging period during COVID. As part of its restructuring effort, the client intended to refinance its debts to support future growth initiatives.
The commercial aviation segment was severely disrupted by COVID. However, long-term growth driven by constantly rising passenger and cargo traffic remains intact. In addition, the creation of newer and more environmentally friendly aircraft models has begun driving aircraft replacement. Therefore, the aircraft order backlogs of the two largest aircraft manufacturers, Airbus and Boeing, are near their all-time highs. With the efforts of the entire supply chain to increase delivery rates, many suppliers are expecting moderate to strong revenue growth in the coming years. Furthermore, new opportunities, such as eVTOL (electric vertical take-off and landing), may disrupt the industry and create numerous new prospects.
We undertook a strategic assessment of the business, its industry and key competitors and determined the likelihood of the business to meet its sales forecast in its latest five-year plan. Our report was shared with the client’s financial adviser, bank and potential debt investors.