TIVP046: TransDigm (TDG): A Conglomerate of Monopolies w/ Daniel Mahncke & Shawn O’Malley
The Intrinsic Value Podcast - The Investor’s Podcast Network
What Does TransDigm Do and Why It Matters
Daniel introduces TransDigm's business of aircraft parts, aftermarket dynamics, and why certified parts create long tails.
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.
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- 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.
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