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Lifting Skyjack to New Heights Sabith Azward Jourdan Bousfield Maddy Coulter Ali Momin Daniel Nicholl Jash Patel
Recommendation
• Target high growth markets
• Introduce servicing
• Acquire Sinoboom
Recommendation Rationale Servicing Implementation Expected Results
Environmental Factors
China
● Construction Growth
o Non-residential: 12.2% CAGR
o Civil engineering projects: 13.9% CAGR
● Government Regulation
o Elimination of scaffolding
Recommendation Rationale Servicing Implementation Expected Results
India
● Construction Growth
o 15% CAGR
● Growing Population
o 2013-2017: 51% increase
Recommendation Rationale Servicing Implementation Expected Results
Middle East
● Construction Growth
o 10 year growth of 80%
● Qatar
o 2022 Fifa World Cup
● Saudi Arabia
o Housing shortage
Recommendation Rationale Servicing Implementation Expected Results
• Founded in 2008
• Complementary product line
• 37.5% growth rate
• Strong distribution in the Middle East
Recommendation Rationale Servicing Implementation Expected Results
Synergies with
Sinoboom
Individual Markets
Skyjack Sinoboom
Recommendation Rationale Servicing Implementation Expected Results
Joint Coverage
Skyjack Sinoboom Both
Recommendation Rationale Servicing Implementation Expected Results
Spider Lifts
• Introduce to North America and Europe
Benefits
•Heights up to 30m
•Better stabilization
•Tight working conditions
Recommendation Rationale Servicing Implementation Expected Results
R&D
● Sinoboom’s strong focus on innovation ● Skyjack gains Sinoboom’s R&D department
o Shifts Skyjack to a innovator position
Recommendation Rationale Servicing Implementation Expected Results
Goals, Values, Culture
• Safe and reliable
• “Always for better access solution”
• Simplicity for customer
• Maintain brand image
Recommendation Rationale Servicing Implementation Expected Results
Financial Projections
Acquisition Price
Sinoboom EBIT $2,072,000
Avg. EBIT Multiple 10.24
EBIT Multiple Proposed 14.48
Proposed Acquisition Price $30,000,000
Optimistic (+25%)
Projected
Pessimistic (-25%)
IRR 32% 26% 21%
NPV $15.9 M $7 M $1.2 M
Payback Period ~4 yrs. ~4.5 yrs. ~5 yrs.
*Annual sales growth decay of 15.6%
Recommendation Rationale Servicing Implementation Expected Results
Servicing Strategy
• Offer full services to the direct consumers in emerging markets
• Strengthen relationships
• Establish Skyjack as the market leader
Recommendation Rationale Servicing Implementation Expected Results
7-Stage Implementation
Stage 1 - Acquisition Proposal
● VP of Asia position ● Maintain current employees
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016 2017 2018
Stage 2 - Purchase
● End of 2014 - $30 million ● Task force and conferences ● Smooth integration process
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016 2017 2018
Stage 3 – Servicing Implementation
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016 2017 2018
Stage 4: Co-branding
Short Term Long Term ● Phase out Sinoboom
● Create unified global brand under Skyjack
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016 2017 2018
Stage 5: Spider Lifts in NA / EU
● Introduce spider lift product line to North America & Europe
● Use Skyjack branding
● Sell to existing rental customers
● Catalogue advertising should highlight new product
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016 2017 2018
Stage 5: Spider Lifts in NA / EU
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016 2017 2018
Stage 6: Superior Product Line
● Current product line evaluation
o Unique Products
o Similar Products
● Innovation from increased communication
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016 2017 2018
Stage 7: Increasing Global Presence
● Markets with high infrastructure growth
o India
o Middle East
● Environmental scanning
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016 2017 2018
Expected Results
● 26% rate of return
● Expansion into Asia and the Middle East
● Increased market share
● Diversified customer base
Recommendation Rationale Servicing Implementation Expected Results
Questions?
