Balance sheet and operational
restructuring services

Seabury Corporate Advisors provides balance sheet and operational restructuring services to companies on distressed M&A transactions, refinancing, recapitalizations, and debt negotiations, and also houses Seabury’s investment banking practices.

Strategic Planning

Seabury provides comprehensive strategy review and business plan development for airline clients and their key stakeholders. We draw upon our wide-ranging experiences to evaluate and craft a strategic direction and produce business plans which allow airlines to achieve optimal potential.

Our approach synthesizes the unparalleled network optimization and revenue forecasting expertise of Seabury APG with inputs from a broad range of subject-matter experts to address cost and capital structure enhancements. Together, these pieces form the foundation of robust business plans enabling airlines and their stakeholders to dramatically improve returns.

Seabury has successfully completed strategy review and business plan development/evaluation assignments for a wide range of airline clients in a variety of challenging situations

  • Liquidity-raising effort
  • Financial restructurings, both in-court and out-of-court
  • Evaluating potential merger partners
  • Evaluating plans for growth
  • Evaluating sustainability
  • Government-owned carriers being prepared for privatization
Cost Reductions

Seabury recognizes the required role and importance of cost management as fundamental to success in today’s aviation industry. Seabury works closely with airlines of all sizes to achieve levels which right-size costs and can deliver dramatic cost reductions where necessary.

Commitment to continuous cost improvements distinguish successful carriers from their competitors. Seabury’s rigorous analytic capabilities, coupled with unparalleled industry knowledge, can help prepare airlines for a variety of financial challenges and provide a competitive edge.

We have worked with diverse clients worldwide to design and help implement comprehensive cost reduction programs as well as targeted efficiency improvements within specific functions. Our help driving operational, labor and staff efficiencies has reduced expenses while improving service. This has enabled clients to drive significant incremental savings into areas such as procurement practices.

Key areas of focus

Cost & performance benchmarking: comparing client cost and efficiency to market best practice across all cost areas

Opportunity identification: developing improvement initiatives and detailed planning alongside management teams

Delivery assistance: getting the money in the bank by working together with client teams to realize savings

Negotiation support: identifying unfavorable contract clauses & most leveraged negotiation points; developing negotiation strategy, modeling negotiation outcomes and direct negotiations

Seabury is a recognized leader in optimizing costs across the entire spectrum of airline cost areas, including

  • Fuel
  • Maintenance (MRO)
  • Aircraft ownership
  • Pilots and Cabin crew
  • Ground handling
  • Catering
  • Procurement and Supply chain
  • Airport and Navigation charges
  • Product, Marketing and Loyalty
  • Sales & Distribution
  • Overhead
Investment Banking

Seabury provides objective corporate advisory and investment banking services delivery by subject-matter-experts in our core markets addressing aviation, aerospace, maritime and financial services sectors.

Independent advice

  • Unlike other investment banks which may be part of larger financial institutions, Seabury is an independent advisory practice
  • Because of our expertise in our focus industries, we often work with larger investment banks to improve deal viability and to ‘pressure test’ underlying investment theses.  When Seabury is involved, the probability of deal execution is increased

A focused approach

  • We believe that by concentrating on just a handful of industries we know very well, we can deliver much better advice to our clients
  • Unlike generalist bankers, we are able to analyze complex situations with precision and deliver the best possible advice and direction to our clients

Deep institutional knowledge and relationships in the industries we serve

  • In addition to our classically trained bankers, Seabury has industry experts who have spent many years working for companies in the industries we serve
  • Because of our operating platform combines professionals with investment banking, management consulting and corporate advisory backgrounds, we are able to field teams with more depth
Mergers & Acquisitions

Drawing on the core principles of our investment banking practice to provide a top rate, conflict-free and unique perspective to our clients, our M&A practice is active across a broad range of investment banking services:

  • Sell/Buy-side advisory
  • Due diligence
  • Valuation
  • Synergy analysis
  • Spin-offs
  • Defense strategies
  • Expert & fairness opinions
  • Subsidiary review
  • Structuring & negotiation
  • Interim management
  • Reorganization options
Turnarounds

Seabury’s corporate advisory team has extensive industry experience in turning a distressed company around via a complete financial and operational restructuring. We have deep experience representing companies in operational turnarounds, distressed M&A transactions, refinancing, recapitalizations, and debt renegotiations.

Our preferred methodology is to perform an all-encompassing assessment of the current situation, implement a prudent and stringent cash conservation program, develop a detailed plan of action including appropriate milestones, and assist management in the implementation of the turnaround plan to ensure successful restructuring and continued viability.

No stone is left unturned as our team works with each client in addressing:

  • Restructuring aircraft debt and leases
  • Aircraft acquisition and financing
  • Crisis and cash management
  • Interim management
  • Maintenance programs and expense reduction
  • MRO operations
  • Airline operations
  • General contract evaluation and renegotiations
  • Overall cost management and reductions
  • Revenue enhancement
  • Commercial and distribution
  • Staffing levels
  • Fuel and currency hedging
  • Financial analysis, accounting and reporting
  • Treasury operations

Seabury has performed extensive due diligence on domestic and international airlines that were privately held, publicly held and government owned. Each situation is unique and requires extensive knowledge of airline operations, the aviation industry, and owner and governmental constraints.

Our efforts not only focus on the financial condition of the airline but also on its operational efficiency and commercial viability. We prepare and work with the client to ensure any potential issues are addressed and a viable long-term business plan is developed and defensible.

We bring forth research and analysis that offers unique insights for our clients into today’s aviation industry. Our value provides evaluation of the operational and financial performance of the airline in light of their competitive environment and other current industry scenarios.

Due Diligence

Seabury’s focus on the sectors that we serve makes us uniquely qualified to execute commercial due diligence in support of M&A activities. Our multi-disciplined team members work seamlessly with legal and accounting due diligence professionals to provide a comprehensive review of target markets and companies.

Through the due diligence process, we not only characterize the target market and company’s position, but also develop key deal points for use in the acquisition negotiation process, and outline key steps to be taken immediately post-acquisition to maximize value.

Our general process investigates key aspects:

Strategic
Market analysis
Competitive positioning
Assessment of key management assessment

Revenue
market dynamics
key growth areas
growth rates
revenue improvement potential
forecast assumptions
customer concentration
customer contracts and agreements
Analysis of partnership or joint-ventures
formation of post-M&A improvement plan

Cost
structure and profitability
cost saving potential
3rd party purchased capacity
maintenance cost exposure
lease structures
Workforce cost assessment
contractors and supplier arrangements
SG&A
schedule of taxes
intercompany agreements
formation of post-M&A improvement plan

Balance sheet
asset condition and maintenance cycles
debt instruments / bank lines with key terms and conditions
off-balance sheet liabilities
Asset liquidity testing / receivable aging schedule
options, warrants and rights
equity and debt and implied valuations
capital expenditures, depreciation and working capital arrangements
external financing arrangements

Financial forecast
financial projections and economic assumptions
Cost structure and profitability
Backlog and capacity assumptions
growth drivers
Predictability and risks of business operations
Industry and company pricing policies
Taxes including net operating loss carry forwards
stress-testing company-provided income statement, balance sheet and cash flow projections

Aircraft Acquisition

Seabury’s aircraft acquisition practice provides expert advisory services and hands-on analytical support and has advised on well over US $100 billion of new or renegotiated aircraft orders while delivering substantial net present value savings to customers.

Aircraft transactions may be infrequent and complex, while at the same time carrying a disproportionate impact on airlines’ long-term success. We view our role as helping client management teams make fleet decisions that are best suited to their financial and strategic goals. Seabury contributes our significant and current transactional experience to deliver the best possible deal outcome for our clients.

Seabury has led many competitions engaging with Airbus, Boeing, Embraer, Bombardier and all major engine manufacturers.

We are the only advisory firm offering a blend of ex-senior executives of aircraft manufacturers and former top executives from large, well-regarded airlines and lessors. Our aircraft acquisition team is able to contribute immediately and brings seasoned negotiation expertise from both the “buy side” and “sell side”, combined with in-depth forecasting and planning capabilities covering industry profitability, long-term network performance and OEM production rates.

Capital Raising & Placement

Seabury’s industry expertise facilitates rapid, targeted, customized capital raise transactions.

Our services span a wide variety of options; some of the most common are:

  • Private equity
  • PIPEs
  • Preferred stock
  • Secured debt
  • Mezzanine debt
  • Unsecured debt
  • Manufacturer financing
  • Off-balance sheet loan financing
  • Pre-delivery deposit financing

Securities transactions conducted through our affiliate, Seabury Securities LLC, Member: FINRA/SIPC

Litigation Support

The professional subject-matter-expertise Seabury’s team possesses in the sectors that we serve results in our ability to provide in depth litigation support. We offer credible insight and commentary supporting the understanding of value drivers and key deal terms. Due to our broad restructuring experience, both in court-supervised settings and in normal course, we understand the complex financing structures employed, counterparty motivations and key areas of leverage.

Seabury’s level of assistance can be as limited in scope as providing expert witness testimony supported by detailed analytics, through participating in cases in broader roles such as a key commercial negotiator.

Our success includes working alongside legal counsel in developing both legal and commercial leverage points, working expert witness resources to pressure-test testimony and/or provide feedback on analytics underpinning testimony, and in evaluating witness of fact statements and discovered documentation from both sides of the case.

We appreciate that most commercial litigation results in some form of structured settlement, and as such are comfortable participating in all phases of the dispute resolution process… from amicable resolution attempts, to mediation and arbitration, to litigation if necessary.

Business Planning

Seabury draws upon the unique experience of its expert team to evaluate strategic direction and produce business plans allowing airline clients to achieve their full potential. Our Business Planning Group utilizes custom tools to gain network optimization and revenue forecasting expertise to address cost and capital structure solutions. The results form the foundation of robust business plans that enable clients and their stakeholders to dramatically improve returns.

Seabury has successfully completed strategy review and business plan development/evaluation assignments for a wide range of airline clients, in a variety of challenging situations, including:

  • substantial liquidity-raising effort
  • financial restructurings, both in-court and out-of-court
  • evaluating potential merger partners
  • establishing plans for growth
  • Evaluating sustainability
  • Government-owned carriers being prepared for privatization
Leadership Team

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The Seabury Advisory Group delivers diversified and responsive business solutions to clients across many industries

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