Aerospace & Defense
The FTI Consulting Aerospace and Defense (A&D) team is staffed with seasoned experts with extensive experience working along the industry value chain and with private equity sponsors and companies in the sector. Our focus is on core issues related to strategic growth, protecting freedom to operate, as well as accomplishing client tactical priorities. We have an in-depth industry expertise in commercial aviation, with defense contractors, MRO providers, airlines, and C4ISR and security-oriented businesses.
Export controls and sanctions requirements apply across the aerospace and defense industry, and are the same for large multinationals, small companies, and their downstream suppliers and subcontractors. We have experience working with the biggest corporations as well as smaller companies, including startups, universities and labs. We help clients navigate issues such as organic and inorganic growth, affordability, profitability, digital strategies, political and regulatory scrutiny, complex disputes with the government and audit agencies, assistance with capital raising activities, working through internal restructurings, development of strategic messaging to external and internal constituents, and providing critical evaluation and improvements to business systems.
Our cross functional capabilities in Aerospace & Defense includes specific expertise in compliance, communications, public affairs and government relations and technology. Our services include strategy development & implementation, performance improvement, mergers & acquisitions, due diligence, merger integration & carve-outs, restructuring & interim management, strategic communications, IT enablement, valuation, valuation – wireless spectrum, investment banking, litigation and arbitration, regulatory and compliance, valuation and purchase price disputes.
How We Help
Commercial Aircraft & General Aviation
With unprecedented backlogs, the commercial aircraft industry is well positioned for the next decade. However, aircraft and system manufacturers are still facing complex challenges. Ramping up production by 50-100% creates a strain in the lower tiers of the supply chain. Combined with a new risk-sharing model, this has resulted in a less clear picture of supply chain rate readiness and risk. New market entrants in the single aisle category from China, Russia, and Japan will increase competitive pressures and focus on cost and service competitiveness. Commoditization of the platform will further drive manufacturers to differentiate their offerings through more complete solutions, including digital offerings that will require new business and operating models. FTI Consulting professionals, experienced with main aircraft manufacturers as well as their first and second tier suppliers, have helped companies at every level within the commercial aircraft value chain solve these and related strategic and operational challenges.
The FTI Consulting Global Risk & Investigations Practice (GRIP) helps aerospace and defense companies better understand competitors, external and internal threats and nuanced political and social forces. We provide a granular picture of motives, agendas and financial wherewithal, so executives can formulate clear-eyed strategies to defend and thwart threats to the bottom line. As seasoned investigators around the globe, we network in circles in which threat agents operate, discreetly gather human intelligence, and relay usable intelligence in real time. Our team overlays that intelligence with public information to design strategy and actions that protect enterprise value. We can penetrate the opaque public and private arenas that stymie or stall clients’ businesses. We also trace “dark” money that subverts legitimate markets and taints executives in ways that imperil the business.
Defense & Security
The global defense and security landscape has fundamentally transformed in the last few decades. Traditional armies and war scenarios have been replaced with the need for quick reaction forces and defense against physical and cyber terror attacks. While defense budgets in the US and most of Europe have shrunk, spending in certain parts of Europe and in Asia Pacific is expected to pick up as a reaction to defense build-up in Russia and China. Affordability and risk-sharing business models continue to be front and center in government contracting. In light of declining budgets and increased ageing of fleets, focus will continue to shift more towards service excellence.
Maintenance, Repair and Overhaul (MRO)
The MRO market continues to grow modestly, but several trends will challenge the independent MRO companies. Increased competition from the OEMs who, after large investments in product development under risk-sharing programs, will drive companies to recoup the lifecycle value of their products. Fleet renewals with higher reliability components will eventually lead to lower MRO demand and the high investments in new repair technologies will reduce the level of competition. The remaining players will battle over sunset and mature platforms while grappling with increased availability of surplus materials from retiring fleets. Excess capacity and a fragmented industry will lead to consolidation and companies leaving the market. Surviving companies will be stronger, more focused, leaner, and more global. Our team of experienced MRO experts has helped OEMs, independent MROs and airline MRO organizations with growth strategies, mergers and acquisitions, and on operational improvements in cost, TAT and inventory.
Shifting defense priorities and approach to modern warfare have precipitated increased spending on services related to C4ISR related projects. Growth will come from interoperability requirements and increasing demand for airborne C4ISR systems in UAVs, sensors, and advanced radar. FTI Consulting has extensive experience working with key stakeholders with companies with C4ISR projects. We help manage backlog and ensure that technical capabilities are in alignment with growth prospects and future opportunities. In addition, our professionals have worked with companies in this space to identify, scale and execute opportunities to partner with related organizations to leverage technical capabilities and develop prime/subcontract relationships that deliver dynamic solutions with reasonable cost proposals.
Advances in satellite technology, launch and service delivery are compelling industry participants to adapt to change at a faster pace than ever before. Barriers to entry are falling and new business models are emerging as satellites play an expanded role in delivering broadband, entertainment and connectivity. Concerns over supply and demand imbalances are leading to price compression and uncertainty about the level of future revenue growth.
These changes can lead to increased business risks as well as opportunities to rethink business models, explore new partnerships, improve performance and reassess capital structures. The FTI Consulting team combines satellite industry and functional expertise to provide strategic, financial and operational advisory services that help companies and their stakeholders succeed with the opportunities and challenges that confront them.
Senior Managing Director
Senior Managing Director
Senior Managing Director
Senior Managing Director, Leader of Private Capital Advisory Services