Non-Destructive Testing background
August 16, 2024
by a searcher from Yale University - School of Management in Atlanta, GA, USA
Searchers, I came across a niche and interesting opportunity. Company fundamentals seem stable and some industry information but would love to hear anecdotally from anyone with either background in the industry or someone who's done some other industry research.
Anyone have experience in the Non-Destructive testing space and willing to share some of your Intel?
Please DM me and we can set up a time to chat.
from University of Texas at Austin in Houston, TX, USA
If I were to DD a deal like this, I would check for (priority order):
- customer and industry concentration; what regulations/industries are they certified in vs what have they been doing
- cyclicality (if focused only on one industry like O&G, Aerospace, Construction)
- Keyman risk for techs with critical certifications
- contract risk (lengths and terms, exposure to NDT errors/liabilities of Seller when you take on the business)
- condition of testing hardware as it can get expensive
- local skill shortages (combination of an aging workforce and specialized nature of the work)
To me, the people element of this is critical, given the massive liabilities in getting NDT wrong (not flagging an issue when there is one). I would want to get a good feeling about the team that is staying.
from The University of North Carolina at Chapel Hill in Atlanta, GA, USA