Any company involved in the global aerospace industry’s supply chains is acutely aware that conditions are evolving rapidly. Smaller firms are less and less likely to be chosen as suppliers by the big aerospace companies, a development that can dangerously reduce their revenues.
The best response to this threat is to become bigger and more diverse. But doing so through organic sales growth is a slow, unpredictable process. A better solution is to expand the company by merging with or acquiring another business.
Abipa Canada (now Abipa International), a Quebec-based aerospace company with about $50 million in annual business, has specialized in precision machining of components for the industry since 1982. Under the leadership of CEO Jean Blondin, its management saw the threat looming and decided that a merger with an overseas company could not only solve the size problem, but also provide a greater international reach.