3 Strikes, Market Out? The State of Aerospace M&A w/ Bill Alderman

With the recent Boeing and Textron strikes, it seems the business of manufacturing new planes just can’t catch a break. 

These labor woes are just another challenge clobbering the production and availability of new aircraft, and we have to brace for a challenging few weeks (or months). 

Unfortunately, this could be the tip of the iceberg that can trickle down, but it’s not all bad news for the whole industry. There is a glimmer of hope - the aftermarket. 

Since the pandemic, this side of the business has been white hot, and the strikes are set to make it hotter. That means a strong M&A market, deals at good multiples and a perfect opportunity for owners looking to cash out. 

Why is manufacturing’s loss the aftermarket’s gain? How can we expect strikes to affect every sector of the industry? How did smaller companies get ahead of it? 

In this episode, President of Alderman & Company, Bill Alderman returns for his quarterly M&A update. Today, we discuss the recent strikes and how they will shape the rest of 2024. 

Three Things You’ll Learn In This Episode 

• You can’t change the rules of capitalism
  The cash injection of covid was necessary but we weren’t going to escape scot-free. What’s driving the issues in labor right now?
  
  
• The beauty of being small and nimble 
  When inflation puts a squeeze on wages, the big corporations have the hardest time. How were smaller companies able to get ahead of strikes? 
  
  
• Production problems = the aftermarket’s advantage 
  The aerospace and defense strikes are going to hit airplane production with another challenge. Why will this make the aftermarket more lucrative? 

Guest Bio

William H. Alderman (Bill) is the Founding Partner of Alderman & Company. Bill is an M&A specialist in the middle market of the aerospace and defense industry with over $2 billion in mergers and acquisition-related transactions to his name. Prior to founding Alderman & Company in 2001, Bill worked for 15 years on Wall Street and in the Aerospace & Defense Industry, principally on M&A transactions in the middle market. His employers included BT Securities, Fieldstone, and General Electric. Bill is a Securities Principal registered with the Financial Industry Regulatory Authority (“FINRA”) and has four securities industry licenses (Series 7, 24, 63, and 65). Bill is a commercial pilot and owns and operates a Cirrus SR22.

• URL Link: https://www.aldermanco.com/
• LinkedIn - William Alderman https://www.linkedin.com/in/williamalderman/

 

About Your Host

Craig Picken is an Executive Recruiter, writer, speaker and ICF Trained Executive Coach. He is focused on recruiting senior-level leadership, sales, and operations executives in the aviation and aerospace industry. His clients include premier OEMs, aircraft operators, leasing/financial organizations, and Maintenance/Repair/Overhaul (MRO) providers and since 2008, he has personally concluded more than 400 executive-level searches in a variety of disciplines. Craig is the ONLY industry executive recruiter who has professionally flown airplanes, sold airplanes, and successfully run a P&L in the aviation industry. His professional career started with a passion for airplanes. After eight years’ experience as a decorated Naval Flight Officer – with more than 100 combat missions, 2,000 hours of flight time, and 325 aircraft carrier landings – Craig sought challenges in business aviation, where he spent more than 7 years in sales with both Gulfstream Aircraft and Bombardier Business Aircraft. Craig is also a sought-after industry speaker who has presented at Corporate Jet Investor, International Aviation Women’s Association, and SOCAL Aviation Association. 

 

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