Value Driven Solutions (VDS) conducted a comprehensive due diligence assessment for a leading private equity firm evaluating a $12 million investment in a portfolio company specializing in aftermarket avionics flight displays. Using our proprietary Diagnostic and Due Diligence Framework, VDS analyzed the company’s operations, product portfolio, market positioning, go-to-market strategy, R&D, and risk profile.
Key Findings:
- Innovative Products: The company’s modular avionics systems offer cost-effective, FAA-compliant solutions, outperforming competitors like Garmin in price and integration.
- Market Opportunity: Strong potential in underserved retrofit, helicopter, and eVTOL markets, with projected revenue growth from contracts like a 600-display retrofit deal.
- Operational Strengths: Lean manufacturing and experienced leadership support scalability, though supply chain risks require mitigation.
- Strategic Recommendations: Enhance dealer networks, boost digital marketing, optimize R&D for digital avionics, and diversify suppliers to address risks.
Investment Rationale:
The $12 million will fund R&D, product launches, and market expansion, positioning the company as a leader in cost-effective avionics solutions. VDS recommends proceeding with the investment, supported by a strategic execution plan to maximize growth and competitiveness.