Liberty Hall Remains Acquisitive, Backs Aerospace Parts Supplier ZTM
After further research, it turns out that Liberty Hall Capital Partners, a “private equity firm (PE) focused exclusively on investments in businesses serving the global aerospace and defense industry” has invested some $2.3 billion in equity capital in 21 acquisitions since 2000. Further, according to their website, 11 of these investments have been “platform” companies with the remaining 10 being comprised of “add-on” acquisitions.
For those of you unfamiliar with these terms, generally speaking, a platform company is a larger investment, typically an initial foray into an industry niche and the subsequent “add-ons” are smaller, synergistic fits that are a good vertical or horizontal fit with the platform. As you can see, Liberty Hall is quite focused on add-ons for their platform (a.k.a. portfolio) companies.
Getting back to this specific acquisition, according to Mergers and Acquisitions magazine, ZTM is going to be “integrated with Liberty Hall portfolio company Accurus Aerospace Corp.” ZTM, founded in 1989 and located in Wichita, Kansas, supplies parts to airplane manufacturers. “Accurus was formed by Liberty Hall in 2013 and has purchased Precise Machining & Manufacturing in 2013; McCann Aerospace Machining in 2014; and LaCroix in 2015.”
According to Liberty Hall partner Rowan Taylor, the addition of ZTM “reinforces our strong relationships with our largest customers and extends Accurus’ geographic presence.” According to the Liberty Hall website, “Accurus is a leading Tier II supplier of highly engineered machined parts, kits and assemblies and processing services.”
So a couple of key takeaways from this news that stand out to me: First, Liberty Hall is actively pursuing a synergistic expansion of the platform company they formed in 2013. You can clearly see this from the four add-ons they have acquired in less than three years. In addition, since the ZTM acquisition, they have also expanded the Accurus leadership team by promoting Robert A. Kirkpatrick to president of Accurus and elevating four “professionals in its senior management team.” This tells us that their growth plans are only in their infancy and that they have more strategic investments on the horizon in this niche.
Secondly, based on the backgrounds of the four individuals promoted last month, it is evident that the leadership teams are being retained in most of the add-ons they are making. This is a classic buy-and-build strategy that equity firms specializing in the lower middle-market deploy. It is truly a win-win for all parties as it enables the equity firm to retain key talent and it also allows existing ownership teams to participate as equity owners in the new, growing entity with a potential second bite of the apple later when the larger new company is sold or taken public.
As we have examined in past articles, this can be a compelling reason to find an equity firm to participate in your future growth. Here is how a few of our clients have described their experiences with PE firms we have helped partner with them:
The gist of all these commentaries is essentially the same: Partnering with a PE firm can provide huge benefits to not only existing ownership but also key employees and even customers.
As Matt Matich points out in the third segment above, “Customers have come to us post-transaction with technology needs and now we can meet those needs because we have the backing of a PE firm.” This is one of the underpublicized but critical post-investment benefits that deeper pockets and financial backing can bring business owners – a path to better service clients and by doing so, solidify the company’s future. Again, a win-win.
Now, some readers might say to me, “Well this transaction is in a sexy industry with lots of upside; my industry is far less attractive to PE.” To that my reply is simply this: If you go back and look at all the posts we had done over the years that examine transactions, you will find PE firms active in a huge number of industries, and odds are good one (or more) are operating in your niche, you just may not be aware of it since these transactions often fly under the radar of business media.
The best way to learn more about professional buyers like these is to attend a Generational Equity exit planning seminar. We hold these throughout North America and they are designed to take a business owner with zero knowledge of the M&A process to a point where he/she can actually begin to plan for an exit.
To learn more call us and ask to speak to one of our senior business advisors about your seminar program and other services that Generational Equity provides. Our toll free number is 877-213-1792. Or if you prefer, you can reach out to us via our website:
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2016 Generational Equity, LLC. All Rights Reserved.
The information we learn from customers helps us personalize and continually improve your experience. Here are the types of information we gather.
We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice.
Generational Capital Markets, Inc.’s affiliates are all part of one corporate family, they work with one another and may work together to provide services to you. The sharing of your information among affiliates enables Generational Capital Markets to serve you more efficiently and makes it more convenient for you to do business with Generational Group. Generational Capital Markets is permitted by law to share information with its affiliates. All of our affiliates follow similar privacy policies.
For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Group may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Group. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Group at its office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Group may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Group does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Group will be deemed NOT to be confidential. By sending Generational Group any information or material, you grant Generational Group an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Group is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Our computer system protects personal information using advanced firewall technology.
Information Generational Group publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Group intends to announce such products, programs or services in your country. Consult a Generational Group representative for information regarding the products, programs and services which may be available to you.
Generational Group makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Group web site, please understand that it is independent from Generational Group, and that Generational Group has no control over the content on that web site. In addition, a link to a non-Generational Group web site does not mean that Generational Group endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, Trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Group BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Generational Capital Markets, Inc. ("GCM"), member FINRA/SIPC, is wholly owned by Generational Capital, LLC ("GC"). Both GCM and GC are affiliated with Generational Equity, LLC; and all part of the Generational Group of companies. This website is solely for general informational purposes and is not guaranteed by us to be accurate and complete statements of fact and should not be relied on as such. Opinions in this website constitute the current judgment of the author as of the date and its last update. The content of this website does not necessarily reflect the opinions of GCM, and is subject to change without notice, and GCM is not under any obligation to update or keep current any information contained herein. This website does not constitute any personal recommendations and does not take into account the specific investment objectives, financial situation or particular needs of the reader. The information contained in this website should not be construed as an offer, or a solicitation of an offer, to buy or sell any securities or other financial investments. The information presented should not and cannot be viewed as an indicator of future performance. To the extent permitted by law, GCM does not accept any liability arising from the use or retransmission of the information in this website.
Furthermore, all information contained within this website is the property of Generational Group.
Honored to win Investment Banking Firm of the Year 3 years running.
Over 50 awards and counting.
Sign up to receive regular email updates, industry-leading insights and details on complimentary M&A executive conferences in your area from our award-winning team
Success, you have been added to our list.