This memorandum outlines a proprietary deal-generation strategy for a Boston-based lower middle market (LMM) investment bank, specifically targeting platform acquisitions and add-ons in the $5M to $20M Enterprise Value range. Unlike generalist bankers, we deploy a thesis-driven, outbound origination model that leverages deep, prime-contractor engineering expertise (6 years at Raytheon Technologies) to source and diligence asset-light, highly fragmented industrial tech and defense services.
The DoD is actively rolling out the CMMC 2.0 framework. Every subcontractor in the Defense Industrial Base must comply to win contracts. This creates an immediate, mandated demand for third-party assessors (C3PAOs) and managed service providers specializing in IT compliance. Zero CapEx, highly recurring monthly revenue.
New England is anchored by critical defense infrastructure (Hanscom AFB, MIT Lincoln Labs, MITRE) and an incredibly deep supply chain of Tier 2/3 manufacturers across MA, CT, and NH. Geographically centered in one of the highest concentrations of DoD contractors needing these services.
I lived through DoD cyber compliance at RTX. I understand NIST 800-171 controls, secure enclaves, and supply chain pain points. I can source deals by identifying sub-scale IT shops and evaluating whether their technical architecture actually meets prime-contractor standards, bringing technical CDD capabilities generalist bankers lack.
Aerospace and advanced manufacturing require rigorous inspection (ultrasonic, X-ray) without damaging parts. NDT is compliance-driven, asset-light (value is in tech certification, not machinery), and highly fragmented. Aging fleets and massive defense backlogs guarantee long-term demand.
New England is a global aerospace hub (Pratt & Whitney, GE Aviation, Sikorsky, Raytheon). The region is filled with precision machine shops that must outsource NDT to independent labs. Ripe for a regional roll-up creating a platform for PE buyers wanting aerospace exposure without manufacturing risk.
I intimately know AS9100 standards and the Nadcap audit process from RTX. I know exactly what prime contractors demand. I can walk a target's floor, review their quality management system (QMS), and immediately determine if their operations scale. I speak engineer-to-engineer with founders.
Testing is the ultimate bottleneck for hardware innovation. Independent labs providing thermal, EMI/EMC, and shock/vibration testing validate defense, space, and MedTech hardware. Vastly less capital-intensive than manufacturing. Fragmented among aging founders.
Boston has a dense cluster of space-tech, robotics, and defense hardware startups. These companies don't build their own testing chambers; they rent time at local labs. A Boston IB can roll up facilities to create a dominant regional testing platform.
I built and tested hardware to MIL-STD-810 and DO-160 standards at RTX. I know the exact test protocols, cost of failure, and utilization metrics. I can underwrite a lab's capabilities, map equipment lifecycle, and identify operational efficiencies to drive post-acquisition EBITDA expansion.
Advanced manufacturing requires insane tolerances; every tool must be constantly calibrated. Outsourced metrology provides highly sticky, recurring revenue. Regulatory-driven and fragmented, with hundreds of local labs serving regional bases.
This bridges New England's two massive economies: Defense/Aerospace and MedTech/Life Sciences. Both require hyper-accurate, certified calibration. A regional roll-up can service Medtronic in the morning and Raytheon in the afternoon.
I dealt with precision tolerances, GD&T, and supply chain quality at RTX. I can diligence a target's calibration scope and assess whether their capabilities meet Tier 1 OEM demands, bringing technical credibility to sourcing conversations.
Defense primes aggressively outsource technical writing, logistics planning, and systems engineering. Pure B2B service—zero capital intensity, pure talent arbitrage. Firms with facility clearances and prime relationships are highly valuable but lack scale.
With NUWC in RI, the sub base in Groton, CT, and Hanscom AFB in MA, New England consumes massive outsourced engineering services. Roll up 20-person shops into a 100-person platform to bid on middle-tier government contracts.
I wrote, reviewed, and used these exact documents at RTX. I know how to evaluate a target's contract backlog, assess the value of cleared personnel, and differentiate firms embedded in sticky programs versus those living off short-term task orders.
UAVs, UUVs, and industrial robotics are moving from acquisition to sustainment. Independent MRO is a high-growth, emerging sector requiring specialized technical talent rather than a heavy manufacturing footprint.
Boston is arguably the robotics capital of the world (MassRobotics, Boston Dynamics, Anduril expansions). Rapidly growing need for localized repair, sustainment, and overhaul services for these fleets.
My systems engineering background allows me to understand the lifecycle of complex, multi-domain systems. I can evaluate technical repair capabilities, OEM certifications, supply chain for critical parts, and diligence warranty repair contracts.
Every complex hardware system needs custom wire harnesses. High-mix, low-volume assembly is labor-intensive, making it capital-light compared to machining. Highly fragmented with aging founders—classic PE roll-up play.
Supports the entire New England hardware ecosystem. Proximity matters because engineers visit harness suppliers during prototyping. A regional roll-up captures immense local value.
I sourced and integrated these components at RTX. I understand IPC/WHMA-A-620 standards and the cost of failed connectors. I can evaluate QMS, supply chain resilience, and capacity for high-complexity mix better than a pure-finance MD.