Group Project 2: The Cyber Security Company Second Round of Capital Raise

Fact Pattern:

Your company sells parts for aircraft.  You have been based in the United States and your manufacturing is in Alabama.  Global demand for your parts has been growing.   Foreign Government contracts are a new large potential area for growth.  Global demand and foreign sales now exceed those in the United States by 75%.  You are a publically traded company on the New York stock exchange.

Your institutional shareholders have been advocating for growth by acquiring a rival company, parts vendor, aircraft technology company, parts distributor, or another acquisition outside of the United States to build parts, lower costs, increase profits, supply your foreign customers at a lower cost, and grow value in the business internationally.  Certain countries also require “offsets” to bid on foreign government contracts for aircraft parts.  Other countries demand a local operation for government contracting.  Your company clearly needs to expand production overseas to meet foreign demand at a minimum.

You are the group of executives the Board of Directors has tasked with devising a plan for expansion through merger or acquisition.

Project:

Please create a power point slide deck to be presented to the Board of Directors of your Company.   You will need to summarize your recommendations for M&A and how you would proceed in detail.  You should also outline the advantages and disadvantages of multiple options for different types of corporate acquisitions (existing Government contractor, competitor, parts maker in a related field, etc.) so that the Board can understand your thinking and outcomes.  The Board will decide how to proceed and which company to acquire and where based upon your recommendations and presentation.  Accordingly, it needs to contain all of the information required for such a decision as well as the appropriate level of detail.