Growth Through Acquisition in the Defence Industry

Industry
Automation (Software/Hardware Focus)
Type
French Multinational Corporation
Objective
Expand into the Defence Industry through Acquisition
Support Type
Buy-side support with a focus on identifying unique deal flow

Background

The client, a well-established multinational company in the automation sector, sought to grow its market presence by entering the defence industry in Australia. They identified acquisition as a faster and more effective strategy than organic growth. However, they…

  • Had difficulty in identifying potential acquisition targets that aligned with their investment criteria.
  • Had limited visibility into firms that were privately held and potentially open to sale.
  • Needed discreet outreach to assess interest without alerting the market.
  • A growing skills shortage; particularly skilled engineers and software developers, that was hampering the company’s ability to scale in Australia. They were seeking an acquisition that included such talent.

What We Did

Understanding & Research

We conducted detailed workshops with the client to define precise acquisition criteria, then performed comprehensive market research to identify potential targets. This included mapping the entire Australian defence-related automation sector and assessing each company’s strategic fit.

Strategic Outreach Campaign

We designed and executed a highly targeted, confidential outreach campaign. Through our networks and research, we identified and approached 57 companies that matched our client’s criteria, ensuring complete discretion throughout the process.

Evaluation & Shortlisting

Through careful evaluation and screening, we identified four high-potential companies that demonstrated both genuine interest and strong strategic alignment. Importantly, all shortlisted opportunities were off-market, allowing for exclusive negotiations without competitive pressure.

Results

We provided the client with opportunities not publicly available, ensuring competitive advantage and better negotiation positions.

57
Firms engaged with
4
Firms exclusively shortlisted

Key Takeaways

  • A targeted acquisition strategy can be more effective than organic growth when entering new sectors, particularly in highly regulated industries like defence.
  • Systematic outreach to a carefully selected group of companies often uncovers premium opportunities that aren’t publicly available in the market.
  • Off-market opportunities provide significant advantages. They eliminate competitive pressure to create stronger negotiating positions for better deal terms.
  • Strategic acquisitions can solve multiple business challenges simultaneously, from market entry to addressing talent shortages in critical technical roles.

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