The $2.2B Aerospace Roll-Up Nobody Talks About | Bryan Perkins and Novaria Group
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In this 5 Minutes in the Lower Middle Market episode, we explore Novaria Group, which has completed 27 acquisitions since 2011 across niche aerospace and defense manufacturing.
The broader lesson has little to do with aerospace itself. It’s about how great lower middle market businesses avoid commoditization, build layered moats, compound through disciplined acquisitions and create proprietary deal flow through long-term relationships.
0:00 “We are not a product business, we are a business model business”
1:40 Avoiding commoditization and building layered moats
2:40 Why simple-looking businesses are often extremely difficult
3:23 The danger of underwriting heroic operational turnarounds
3:50 How Novaria built mostly proprietary deal flow
4:13 Centralized controls, decentralized operations
4:44 The bigger lesson: boring niches compound quietly