Alderman & Company’s latest survey highlighted the impact of Boeing's production rate cuts on the valuations of its suppliers, with M&A professionals and company executives reporting only a slight negative impact. The median response value was a negative 0.6, signalling a tempered reaction to Boeing's production challenges. The report suggests that despite Boeing's production cuts having a negative impact, it is being offset by ""suppliers gaining pricing power"" as well as a stronger demand in the aftermarket. Airline Economics senior vice president - airline analysis Chris Broad commented: ""The Alderman survey doesn’t give us too much of a surprise with only a slightly downward (0.6) impact on M&A appetite with respect to Boeing’s suppliers."" Broad noted that this effect is being softened by ""the inevitable stronger aftermarket and increased pricing."" He added that Boeing’s recent acquisition of Spirit Aerospace, a major supplier, could also be playing a role. ""Perhaps a significant factor not mentioned would be that Boeing acquired one of its bigger suppliers, Spirit Aerospace, last month (with the expectation to close in 2025), thus taking them out of the M&A arena until they are inevitably broken up post-closing,"" Broad said. The survey was delivered to strategic buyers, financial buyers, and operators of middle-market A&D companies. Alderman & Company added that the survey was delivered prior to the selection of new Boeing CEO Kelly Ortberg.
M&A survey values Boeing suppliers
