The Best Practices Of The Best Acquirers

Via Merrill Datasite:

1. Stay in the industry where you’re an expert
2. Remain very lean at the top
3. Never overpay for an acquisition, but be fair.

Steve Townes founder of Ranger Aerospace in 1997 should know a thing or two about acquisitions. Over nearly two decades, Ranger Aerospace has been a catalyst and steward for numerous deals in industries related to their core activity. 17 years ago it was the acquisition of ACL Airshop which manufactures, leases, and services equipment used in loading and off-loading cargo at many international airports. Since then they’ve made numerous other acquisitions, most of them cross border transactions.

Steve shares some great insights in this report put together by Merrill.

Unlike large corporations, which have corporate development teams and multiple outside advisors, Townes said his approach to M&A stays mostly in-house. “The board is comprised of the operating company President, me, and our partners in multiple private equity institutional funds. Ranger stays especially tight with its institutional partners, always led by a Lead Investor. We take a look at various deals but we stick with what we know—aerospace services. I do M&A largely myself along with our CFO and the operating company presidents, plus several board members. They’re constantly talking with intermediaries. Once people find out that… download the pdf.