Case Presentation

1. Lifting Skyjack to
New Heights
Sabith Azward
Jourdan Bousfield
Maddy Coulter
Ali Momin
Daniel Nicholl
Jash Patel

2. Recommendation
• Target high growth markets
• Introduce servicing
• Acquire Sinoboom
Recommendation Rationale Servicing Implementation Expected Results

3. Environmental
Factors

4. 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

5. India
● Construction Growth
o 15% CAGR
● Growing Population
o 2013-2017: 51% increase
Recommendation Rationale Servicing Implementation Expected Results

6. 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

7. • Founded in 2008
• Complementary product line
• 37.5% growth rate
• Strong distribution in the Middle East
Recommendation Rationale Servicing Implementation Expected Results

8. Synergies with
Sinoboom

9. Individual Markets
 Skyjack
 Sinoboom
Recommendation Rationale Servicing Implementation Expected Results

10. Joint Coverage
 Skyjack
 Sinoboom
 Both
Recommendation Rationale Servicing Implementation Expected Results

11. Spider Lifts
• Introduce to North America and Europe
Benefits
•Heights up to 30m
•Better stabilization
•Tight working conditions
Recommendation Rationale Servicing Implementation Expected Results

12. 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

13. Goals, Values, Culture
• Safe and reliable
• “Always for better access solution”
• Simplicity for customer
• Maintain brand image
Recommendation Rationale Servicing Implementation Expected Results

14. 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

15. 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

16. 7-Stage
Implementation

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. Questions?