TIVP046: TransDigm (TDG): A Conglomerate of Monopolies w/ Daniel Mahncke & Shawn O’Malley
The Intrinsic Value Podcast - The Investor’s Podcast Network
Acquisition Scale, Success Rate, and Law of Large Numbers
Daniel discusses typical deal sizes, the Esseline example, historical hit-rate, and growth challenges as market cap rises.
Daniel Mahncke and Shawn O’Malley dive into TransDigm — the aerospace supplier that turned “boring parts” into a compounding machine. Built around proprietary, often sole-source components installed across nearly every commercial and military aircraft in service, TransDigm monetizes decades of aftermarket demand through premium pricing and enviable margins.
IN THIS EPISODE, YOU’LL LEARN: 00:00:00 - Intro 00:01:19 - What TransDigm does, and how was it founded 00:14:45 - What makes TransDigm’s founders and philosophy so special 00:18:05 - How TransDigm uses debt to leverage returns 00:34:34 - Why TransDigm is basically a monopoly 00:49:41 - What TransDigm’s M&A Playbook looks like 00:54:14 - Where future growth is coming from 01:16:15 - Whether TransDigm is fairly valued 01:20:06 - Whether Shawn & Daniel add TDG to The Intrinsic Value Portfolio
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
BOOKS AND RESOURCES
- The Investors Podcast Network is excited to debut a new community known as The Intrinsic Value Community for investors to learn, share ideas, network, and join calls with experts: Sign up for the waitlist(!)
- Sign up for The Intrinsic Value Newsletter to track our Portfolio.
- Howley Interview with William Thorndike at the 50x Podcast.
- Clay’s Deep Dive into TransDigm Competitor Heico.
- Clay’s Interview with Niklas Sävås about Serial Acquirers.
- TransDigm 2024 Analyst Day Webcast.
- Explore our previous Intrinsic Value breakdowns: Paypal, Uber, Nike, Reddit, Amazon, Airbnb, TSMC, Alphabet, Ulta, LVMH, and Madison Square Garden Sports.
- Related books mentioned in the podcast.
- Ad-free episodes on our Premium Feed.
NEW TO THE SHOW?
- Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok.
- Browse through all our episodes (complete with transcripts) here.
- Try Shawn's favorite tool for picking stock winners and managing our portfolios: TIP Finance.
- Enjoy exclusive perks from our favorite Apps and Services.
- Learn how to better start, manage, and grow your business with the best business podcasts.
SPONSORS Support our free podcast by supporting our sponsors:
Learn more about your ad choices. Visit megaphone.fm/adchoices
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
The AI-powered Podcast Player
