M&A project in the Aviation Industry

Soft landing and valuation services

This particular project allowed us to work with a European client seeking to enter to Mexican market, fisrt through the acquisition of a minority stake in one of the country's airport groups, and furthering its portfolio through a JV with state governments seeking to expand their local airports. This required developing an agenda that allowed the client to familiarize itself with the country, its policies, as well as key regulators and government officials crucial to carry out the transaction, as well as maximize the probability of future success post-acquisition. Our integrated services included:

• Comprehensive agenda with regulators and key officials
• Identification of potential investment opportunities within the fund's investment thesis
• LBO analysis, capital strategy, and negotiation
• Soft landing services

Entering a new industry for us, required in depth, accelerated familiarization with it, including participating at the top Aviation conference in Amsterdam in November 2023. This allowed us to connect with the leaders in the space to faciliate the transaction.

Approach

The first step for us is always seeking to understand the transaction at hand and getting to know each of the agents involved in it. For this particular case, we had the chance to host the fund principals in September in Mexico City and later on continue with a tour that included Querétaro, San Miguel de Allende and Nayarit.

During this trip, we were able to get a deeper understanding of the desired investment outcome that the client was seeking, as well as provide suffcient geopolitical background exposure to allow them to get sufficient acquaintance with the country and begin drafting a successful strategy.

Deep understanding of a transaction at hand allows us to develop a detailed strategy that maximizes the probabilities of success.

Once we got to understand the transaction, we began developing a tailored strategy to be able to complete the transaction within a short time frame. We identified a potential target acquisition and began the communication process with key agents to perform the required valuation and LBO model that would fit the client's needs.

Client

This particular client was based in Europe, with operations in Asia and Africa. It was highly interested to enter the Latin American market. Due to this, we worked with them to provide a soft landing solution that would allow them to carry out transactions in Mexico with an optimized fiscal and operational structure.

Results

The close relationships with companies and regulators in Mexico and the rest of the hemisphere allowed us to accelerate the transaction timeline.

Within two months, we had obtained in the necessary data to perform a detailed analysis for the client and we had landed a meeting with the Board of Directors of the acquisition target which took place in November in Madrid, Spain.