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Webinars and Our View

Industrial Economic Report: https://seraph.com/jul25mfgwebinar 

Past April 25th Webinar: https://www.linkedin.com/events/manufacturingexecutivetariffupd7317949489460191232/theater/

Past Webinar April 3rd: https://www.linkedin.com/events/tariffwebinarformanufacturingce7307462042838347779/theater/

Past Webinar March 4th:
https://www.linkedin.com/events/tariffandtradeupdateformanufact7300211965736497152/theater/

Past Webinar February 20th: https://www.linkedin.com/events/tariffandtradeupdateformanufact7295547804259688448/theater/

Past Webinar February 11th: https://www.linkedin.com/events/seraphtariffupdateformanufactur7293303559796756481/theater/

2025 Trump Tariffs Summary for Manufacturers
Updated August 17 2025

Upcoming Key Milestones

Auto Tariff

Canada & Mexico

Reciprocal Tariffs (Global)

China

Steel & Aluminum (Section 232)

Copper (Section 232)

Escalation Clause

Potential Sector Tariffs

As European nations ramp up defence spending and seek strategic autonomy, alliances and joint ventures (JVs) have emerged as pivotal tools to meet soaring military demand, boost industrial capacity, and ensure resilience amid geopolitical uncertainty.  

From our extensive industry experience, we have condensed our strategic learnings on how to navigate, structure, and optimise such alliances. You’ll find this insight collated in our latest defence paper where we unpack the drivers, strategic value and benefits of JVs.  

We take a closer look at each of the essential steps that help maximise production efficiency:

8 Essential Steps to Optimise your Defence Manufacturing Joint Venture:

Next Steps: Is Your Target Ready?

At Seraph, we specialise in operational due diligence for defence manufacturers.

Contact us www.seraph.com/contact-us/ to schedule a rapid readiness review.

To access the full European Defence Manufacturing Joint Venture PDF now just complete this short form:

As Europe ramps up defence spending in response to heightened geopolitical threats, the defence manufacturing sector is undergoing a profound transformation.

For private equity firms and strategic buyers eyeing acquisitions in this space, the stakes have never been higher. Record order backlogs, growing capital inflows, and a renewed focus on European strategic autonomy mean that acquiring the right asset isn’t just about price—it’s about operational performance.

In this high-pressure environment, operational due diligence (ODD) is emerging as a critical success factor. Unlike traditional financial or legal diligence, which validates what a business has done, operational due diligence focuses on what a business can do. And for defence manufacturers, that difference is everything.

The announced value of private equity and venture capital-backed investments in aerospace and defence in Q1 2025 totalled over  $4.27 billion globally, nearly equalling the $4.31 billion invested in such deals in all of 2024.

Source: S&P Global Market Intelligence data

The New Defence Landscape

Since the Russian invasion of Ukraine, European nations have accelerated their defence budgets, leading to unprecedented order backlogs for manufacturers. The eight largest European defence companies saw a 19% increase in backlogs in 2024, totalling a record €291 billion.

EU-level initiatives like the €150 billion SAFE programme and national increases under the “ReArm Europe” strategy further fuel this demand.

But this boom brings challenges. Capacity constraints, supply chain fragility, and the pressure to scale rapidly have created operational bottlenecks. In parallel, private capital is flowing into the sector at pace, driving competition for assets and pushing valuations higher.

The Case for Operational Due Diligence

Too often, buyers rely solely on financial due diligence to assess acquisition targets. This may uncover the health of the balance sheet, but it misses the operational heart of a manufacturing business.

Operational due diligence fills this gap. It evaluates a company’s ability to deliver on future orders, meet customer expectations, integrate new technologies, and scale production profitably.

This insight is essential not just for risk management—but for unlocking hidden value. In our experience operational due diligence – done well – can pinpoint areas where improved performance can generate significant value and make a substantial contribution to a deal’s ultimate return. According to some estimates, operations can account for around half of all value creation.

Value Creation Starts Before the Deal Closes

Significant  value creation comes from operational improvements—not just from financial engineering or revenue growth.

Operational Due Diligence allows acquirers to:

Successful manufacturers the aerospace and defence sector will pursue acquisitions that add specific capabilities such as operational talent and advanced operating models — and rely on ODD to ensure those capabilities are viable and scalable.

What to Examine in Operational Due Diligence for Defence Assets

At Seraph our hands–on experience directs our key areas of focus when we deliver a manufacturing ODD for a defence asset:

Why is Defence Different?

Defence manufacturing brings additional complexities:

Operational due diligence, in this context, becomes more than just prudent—it’s essential. Without it, buyers risk underestimating the time, cost, and risk of scaling the business.

The 100-Day Edge: From Insight to Action

The best acquirers use the pre-close period to build their 100-day value creation plan.

ODD delivers the insight needed to:

Seraph believes that firms who embed operational planning early are best positioned to capture synergies and defend margins in dynamic markets.

Conclusion: Operational Diligence as a Differentiator

In today’s European defence landscape, competitive advantage is not just about acquiring the right target—it’s about knowing what to do with it.

Operational due diligence turns uncertainty into insight, risk into opportunity, and complexity into clarity.

Whether you’re a , operational due diligence is your edge in a crowded, high-stakes market.

Don’t just buy a factory. Buy the ability to deliver

Next Steps: Is Your Target Ready?

At Seraph, we specialise in European Defence Operational Due Diligence.

Contact us www.seraph.com/contact-us/ to schedule a rapid readiness review.

Download our European Defence Operational Due Diligence Acquisition Checklist here:

Let our experts help you go beyond the balance sheet so you can unlock real value – fast.

Sources:

Amidst a period of geopolitical turbulence and fundamental shifts in traditional alliances, European nations have made a clear and urgent call to increase defence capacity, capabilities, and spending.

The European Defence Manufacturing industry is arguably facing its greatest need to create a stronger industrial base and develop the necessary production capabilities in the EU.

This report presents an analysis of the urgent need for European defence manufacturers to rapidly increase production capabilities and capacity in response to significant geopolitical shifts. The lessons that we take from history is that the time to prepare is now, as the world is moves regardless of our readiness.

How Seraph Delivers Sustainable Value

Seraph’s four-phase methodology – Understand, Stabilize, Sustain, and Transition – has been instrumental in helping manufacturing clients scale up, while achieving supply chain excellence and operational resilience. With an average ROI of over 300% and a payback period of less than six months, Seraph delivers both rapid capacity increases and long-term improvements. 

Whether your organization is responding to increased demand, navigating a post-merger integration, or countering tariff-driven cost surges, Seraph’s manufacturing expertise ensures a tailored approach to solve your most complex inventory and supply chain challenges. 

Contact us today to schedule a discovery call, or see our case studies for more information.

Leveraging lead and lag indicators to drive performance 

For medical device manufacturers implementing new (or trying to measure existing) production and process controls, understanding the lead and lag indicators is critical to meeting production and performance goals. This is particularly important when doing so to meet ISO 13485 and FDA 21 CFR part 820 requirements. 

A lag indicator is a performance measurement that reflects the outcomes or results of processes after they have occurred.  Manufacturers need to measure the success of a process to understand if the controls they’ve put in place are effective. Otherwise, you may be adding controls that add cost, don’t add value, and worse, don’t meet those critical requirements.  Lag indicators are often used to assess the effectiveness of production processes, identify areas for improvement, and make informed decisions for future actions. 

Conversely, a lead indicator is a performance measurement that provides early signals about future performance or potential issues in the production process. Lead indicators are critical in understanding if performance is starting to drift before serious issues occur. They are proactive and predictive, helping organizations anticipate and prevent problems, optimize processes, and improve overall efficiency.  However, lead indicators can be some of the most difficult to identify correctly. 

The Worst Indicator 

The worst indicator for any medical device manufacturer is being under an FDA consent decree. In this situation, you have lost control over your own plant and decision-making processes.  Getting in front of the problem with the right measures will ensure you aren’t getting into this situation. 

What is an FDA Consent Decree? 

An FDA consent decree is an agreement made between an entity and the U.S. Food & Drug Administration (FDA) to enforce rules and regulations set by the FDA. It typically involves a negotiated, court-approved order barring an FDA-regulated firm from violating the FDCA, subject to certain pre-specified remedies. The FDA works with the Department of Justice (DOJ) to file a complaint against a business in Federal District Court to obtain a consent decree. A consent decree is the maximum enforcement action the FDA can take. Violating a consent decree can be devastating to a business. 

Potential Lead Indicators Leading to an FDA Consent Decree 

Typical lead indicators include an increased number of product recalls (a lag indicator of poor quality) and 483 warning letters (a lag indicator of an FDA inspection).

Lead Indicators for FDA Inspections and Recalls 

What are the lead indicators for a potential FDA inspection or a looming product recall? These often include an increase in Corrective and Preventive Actions (CAPAs) driven by customer complaints and a high number of Medical Device Reports (MDRs). It is no surprise that while MedTech recalls are piling up fast in 2024, CAPA issues (21 CFR Part 820.100) are the highest contributor to inspection citations.

Connecting Quality Issues and Lead Indicators 

While CAPAs are a lead indicator for potential FDA inspections and recalls, they are also a lag indicator driven by quality issues such as high scrap rates and Non-Conformance Reports (NCRs). Often, quality problems start with unmeasured repair or rework to fulfill customer requirements, known as “The Hidden Factory.” Measuring and acting on trends in repair/rework is an essential starting point for connecting the dots from lag to lead indicators. 

The Importance of Gemba Walks 

Your morning Gemba walk should include reviewing your product lead and lag indicators and their trend lines. This practice helps you maintain a continuous improvement cycle and stay ahead of potential issues.   

How Seraph’s Services Support Lead and Lag Indicators 

Seraph helps clients solve their most challenging operational problems by leveraging a proactive, hands-on approach that directly impacts output, product quality, efficiency, and cost balance. Seraph can also help to identify which metrics will be most effective in not only avoiding significant issues but also avoiding costly production-related delays and missing customer deadlines.  Here’s how Seraph’s services align with and enhance these crucial performance metrics: 

1. Quality Management 

Seraph’s Quality Management services are instrumental in addressing lead indicators like CAPAs by identifying potential quality issues early.   Identification of potential or ongoing issues and implementing effective corrective and preventive actions are how Seraph can help prevent minor issues from becoming major ones that can lead to potential product recalls and customer complaints. 

2. Turnaround 

Seraph’s turnaround services stabilize operations when falling behind, missing targets or failing to achieve goals. By improving production line efficiency, optimizing material flow, and maximizing performance, Seraph helps convert low production rates and missed shipments into actionable improvements that serve as a blueprint for operational stability. 

3. Mergers, Acquisitions & Spinoffs 

During mergers and acquisitions, Seraph’s approach mitigates risks that can otherwise lead to disruptions in production or quality issues. Implementing value-creation plans and detailed risk assessments ensures the success of these major transitions, ensuring future operational integrity and profitability. 

4. Relocation and Consolidation 

Relocating and consolidating production lines can be fraught with risk, negatively impacting output and product quality if not appropriately handled. Seraph’s structured approach ensures that these transitions are smooth and compliant, preventing potential missed MDR compliance or supply interruptions. 

5. Project Management 

Seraph’s project management services help medical device manufacturers stay on track with planned product or production milestones and process improvements. Properly managed projects reduce the likelihood of delays and quality problems. 

6. Logistics and Supply Chain Optimization 

Inefficient logistics and supply operations can lead to delays, missed customer deadlines and increased costs. Seraph’s expertise in supply chain management, including lean material flow and supplier qualification, reduces the risk of disruptions, preventing delayed shipments or compliance issues from materializing. 

7. Production Data Collection 

Seraph’s operational software provides real-time data transparency, which highlights process deviations early on. Learn more here Production.net Services.

8. Strategy Development and Implementation 

By providing strategic guidance, Seraph helps manufacturers establish or refine production goals, addressing resource allocation and supply chain resilience. Effective strategy execution helps avoid lagging performance metrics such as profitability drops or operational inefficiencies. 

9. Assessment & Appraisal 

Through comprehensive assessment and appraisal services, Seraph identifies risks and creates clarity regarding operational gaps. This rigorous evaluation ensures adherence to regulatory standards and ultimately can assist companies in avoiding serious issues like FDA consent decrees or major compliance failures. 

By focusing on early detection, process optimization, and risk mitigation, Seraph helps manufacturers maintain a balance between addressing existing challenges and preventing future ones, driving sustainable operational excellence. 

Would you like help? Please Contact

WEBINAR

Want insights into the biggest challenges in MedTech supply chains? Join Seraph’s MedTech team for a live session, where we’ll help manufacturing executives navigate upcoming changes.


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Maximizing Value in Manufacturing Acquisitions

In private equity and strategic acquisitions, operational due diligence is crucial for maximizing value. Over the last decade, most returns in private equity have come from multiple expansion and revenue growth rather than margin expansion. However, significant value is often overlooked due to the lack of comprehensive operational reviews. By leveraging experienced teams for operational due diligence before closing a deal, acquirers can identify opportunities, mitigate risks, and accelerate post-acquisition growth.

The Power of Operational Due Diligence Insights

Vetting operations with the right people can:

Leveraging Expert Teams for Superior Results

It takes many unique skill sets to field a championship team. Opportunities are often missed unless you can bring:

Maximizing the Pre-Close Period

The 30 days before deal closure are critical for comprehensive operational due diligence. During this time, expert teams can:

Driving Sustainable Value Creation

The right process enables private equity firms and strategic acquirers to:

Long-Term Strategic Advantage

The true value of operational due diligence lies in setting the foundation for long-term success. Expert-led due diligence enables:

Conclusion: Unlocking Value Through Operational Due Diligence

Expert operational due diligence is a powerful tool for value creation. It reveals not just risks, but also hidden opportunities. By identifying weaknesses that can be transformed into strengths, it paves the way for significant improvements. This deep insight allows buyers to see the full potential of an acquisition, often spotting value others miss. With a clear roadmap for enhancements from day one, companies can accelerate growth and boost profitability faster. In the competitive world of manufacturing acquisitions, this ability to quickly create and capture value makes all the difference.

Seraph delivers long-term operational improvements that help our clients transform their manufacturing operations.
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