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Published: September 28, 2024

Why Private Equity is Driving Aerospace & Defense (A&D) Deal Activity in 2024

In 2024, the Aerospace and Defense (A&D) sector continues to face significant challenges, including supply chain disruptions, safety concerns, and a growing pilot shortage. Despite these obstacles, deal activity remains robust, with private equity playing a leading role in driving transactions. Private equity firms are capitalizing on sector resilience and liquidity, fueling deal flow even amid complex market conditions.

Key Market Drivers

Resilience in A&D: North American airlines turned profitable last year, with global airlines expected to follow suit. This profitability is fostering a more positive investment climate, allowing private equity to push forward with acquisitions, even amid supply chain struggles and fleet availability concerns.
Strategic Portfolio Adjustments: Many strategic buyers are refining their portfolios, and private equity firms have stepped in to bridge the gap by offering creative financing solutions. These firms are not only driving deal volume but are also emerging as net buyers, contributing to higher valuations in the sector.
Regulatory Scrutiny: Regulatory pressures continue to shape deal-making in the sector. Sellers are increasingly focused on potential buyers’ abilities to close transactions without triggering antitrust issues, further enhancing private equity’s role in the market as agile and experienced deal makers.

Value Driven Solutions (VDS): A Global Leader in A&D Transformations

As private equity reshapes the A&D landscape, businesses must ensure they remain competitive by enhancing operational efficiency and productivity. This is where Value Driven Solutions (VDS) stands out as a global leader in Lean Transformations and operational excellence within the A&D sector. VDS’s comprehensive and proprietary Value Driven Approach® has been instrumental in helping A&D companies maximize value, reduce waste, and improve their overall operational efficiency, making it a crucial partner for organizations undergoing private equity-led transformations.

Why Value Driven Solutions?
Superior Training and Lean Transformation Expertise: VDS delivers exceptional operational excellence (OpEx) training, tailored to meet the specific needs of the A&D industry. Their training programs cover all levels—from executives to front-line employees—ensuring a fully integrated Lean culture. With a focus on process management, leadership development, and the latest technological advancements like AI tools, VDS’s training not only enhances individual capabilities but also drives company-wide transformation.
Leadership Solutions for Lasting Change: One of the key challenges in any transformation is leadership. VDS excels in providing leadership solutions that empower executives and middle management to drive sustainable change. Through comprehensive diagnostic assessments, strategic planning, and leadership workshops, VDS develops leaders capable of steering their organizations toward world-class performance. This capability is crucial in the private equity context, where leadership alignment and swift, decisive action are often the keys to success.
End-to-End Aerospace Productivity Solutions: In the complex world of aerospace manufacturing, VDS offers end-to-end continuous improvement solutions that optimize every aspect of a company’s operations. Whether it’s enhancing supply chain efficiencies, improving procurement performance, or implementing cutting-edge automation technologies, VDS helps aerospace companies achieve their productivity goals. Their Value Driven Approach® guarantees measurable results and a fast return on investment, often delivering ROI in weeks, not years.
Rapid Continuous Improvement with Proven ROI: VDS’s eight-step customer-centric model is designed to solve specific problems efficiently and cost-effectively. By focusing on quick wins, rapid improvements, and long-term strategic breakthroughs, VDS has helped numerous A&D companies streamline their operations. The Value Driven Approach® identifies areas of waste—whether in transportation, inventory, motion, or overproduction—and provides solutions that not only eliminate these inefficiencies but also lead to significant cost savings.
Proven Impact on Private Equity-Backed Transformations: For private equity firms looking to optimize their A&D portfolio companies, VDS offers a proven track record of delivering fast, sustainable results. Their expertise in operational excellence, combined with their tailored solutions for leadership, technology, and culture transformation, makes VDS the ideal partner for enhancing enterprise value, expanding margins, and improving capital efficiency. With an emphasis on measurable outcomes, VDS helps private equity-backed companies become more attractive for future exits or growth strategies.

Conclusion

As private equity continues to drive deal activity in the A&D sector, companies must look for partners who can help them navigate the complexities of operational excellence and leadership transformation. Value Driven Solutions stands out as a global leader in Lean Transformations, providing A&D companies with the tools, strategies, and expertise needed to stay competitive in a rapidly evolving market. By leveraging the Value Driven Approach®, VDS empowers organizations to achieve end-to-end efficiency, optimize value streams, and drive long-term, sustainable growth—ensuring that they are well-positioned for success in 2024 and beyond.

Aerospace & Defense → VDS Consulting (vdsconsultinggroup.com)

Contact us today:

772-722-8811

info@vdsconsultinggroup.com

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George Bowman

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