Precision Aviation was acquired by GennX360 in July 2018 and has been busy buying up related aviation companies over the last four years:
GennX360 is a private equity firm, so my key questions for the PTB board and its advisors are:
Where does GennX360 see the future value in PTB and is this being appropriately valued?
What are the synergy benefits with the existing Precision Aviation business and does the offer price deliver a fair share of those synergy benefits to the current owners of PTB?
What sort of multiples has GennX360 paid for their other related acquisitions and is the multiple here at least comparable?
As a Private Equity firm, what is GennX360's investment horizon for the Precision Aviation business and what is their exit strategy?
If PTB resists for now seeking to lock in some of the future growth they have signalled is out there, will GennX360 be prepared to pay more for PTB in 12 or 24 months time?
If GennX360's on-sells the business in the short to medium term, can PTB negotiate an earn out for any uplift in value form the acquisition price?
Is GennX360 a good cultural fit for PTB?
The PTB Board and advisors need to go into the process with their eyes wide open and not be seduced by the immediate uplift in value (assuming they haven't been working on this deal for some time and have already agreed terms). The timing of today's Pause in Trading and then Trading Halt however suggests to me the approach has been sprung on PTB. The PTB board needs well skilled investment advisors on board today.
