Click here to load reader

Skyjack Presentation

  • View
    327

  • Download
    0

Embed Size (px)

Text of Skyjack Presentation

  • 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

    Sinobooms strong focus on innovation Skyjack gains Sinobooms 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?