Be Aerospace

Introduction:

B/E Aerospace, Inc., based in Wellington, Florida  is an S&P 400 and NASDAQ listed manufacturer of aircraft cabin parts, including passenger and crew seats, oxygen delivery systems, kitchens and lavatories for commercial airliners. The company is currently in its recovery period due to 9/11 terrorists’ attack as it experienced a slowdown as its consequence. The cyclical nature of this industry adds to its difficulties in recovering. This calls for a sound and optimal capital structure that can help it to recover and get back to its operations with a boom.

The company has a rich heritage due to its some of the great acquisitions that helped it to increase its market share drastically (as high as 60%). It acquired a total of 26 business during a 15 year period for approximately $1 Billion. These acquisitions helped the company to diversify its business as well as gain more expertise in its current business.

The insight to acquire the right kind of businesses and making innovations in this diversified industry, BE Aerospace has managed to grow tremendously over the time. However, there have been times of difficulties due to emerging challenges and technological advancement.

Past Analysis:

1987-

In 1987 the firm acquired Bach Engineering, a leading manufacturer of passenger control units for airline seats.

1989-

It acquired EECO Avionics, which landed the company a 60 percent market share. The two acquisitions gave the company its name, B/E Avionics. The company then went public and shortly thereafter was renamed B/E Aerospace.

1995-

In the year 1995 and 1996, the company incurred heavy losses due to introduction of a new In flight entertainment system called Multimedia Digital Distribution System (MDDS) which it then sold in 2000.

1999-

This period was again dark as the company faced seat manufacturing problems resulting in a net loss for the year.

2001-

BEAV diversified furthermore by getting into fastener...