Top 500 Airport Activity Ranking Continued from page 77 As you can see, Tuscaloosa (TCL) ranks 222nd in 2017 d 10-Year Trend Business Aviation Jet Movements Turbine vg. +62.8%) 33% 24% 58% -31% 487% 99% 2% 28% 77% -48% 6% 156% 15% 27% 384% 70% 0% 9 86 01 77 -66% 82% 143% -22% (Avg. -52.3%) ments 10-Yr. Trend Movements 10-Yr. Trend 6 468 1 77 9 39 35 18 1 4 48 25 03 56 13 66 4 55 165 -38% -58% 2,048 124 248 1,654 1,192 tive of buyer interest in these smaller markets shown above are the other markets of similar size that have seen acquisitions in the recent past, such as Rifle, CO (#215), Olathe, KS (#218), and Key West, FL (#230).3 Piston airport is performing in the “New Normal” period as the economy has slowly recovered. In the TOP 500, 10-year jet activity has increased an average of 5.7%, so TCL (at + 15%) is performing significantly better, and is likely why this market has attracted buyer interest2. Also indicative of buyer interest in these smaller markets shown above are the other markets of similar size that have seen acquisitions in the recent past such as Rifle, CO (#215), Olathe, KS (#218), and Key West, FL (#230)3. Be a Smarter Seller -90% -30% 68% BE A SMARTER SELLER In my 3rd -49% 992 get done,4 -56% 382 -35% 1,462 -62% Quarter 2017 ABJ article describing how deals 1,151 6,151 2,079 738 2,585 450 I mentioned the importance of sellers telling the story of the business in a fact-based way to buyers. Many sellers are simply not prepared for a question, such as: “How do you compare this market to surrounding airports of the same size?” And if the answer is something like, “Well, I think we’re doing pretty good” with no supporting data, then In my previous article describing how deals get done4, I mentioned the importance of the seller telling the story of the business in a fact-based way to a buyer. Many sellers are simply not prepared for a question such as, “How do you compare this market to surrounding airports of the same size?” And if the answer is something like, “Well, I think we’re doing pretty good” with no supporting data, the seller has lost the opportunity and the buyer is left to assess the market-usually in a more conservative manner. -49% -41% -63% -71% -51% 700 4 2 Hawthorne Global Aviation acquired Bama Air at TCL in October 2016 per the company’s press release. -54% -62% 2,888 772 3 The entire TOP 500 report is available at argi.com by accessing the “InnerCircle” portal and using the user- name “2017 TOP 500” and password “data”. -33% -72% 2,077 4 NATA Aviation Business Journal, “Selling Your Businesses,” 3rd -73% -22% Quarter 2017 (available at argi.com, under “publications”). So be a smarter seller, and know the facts in your region, in your market, and on your airport. Go to the FAA and ARGI websites mentioned here, study the data, and be better prepared. 2 Hawthorne Global Aviation acquired Bama Air at TCL in October 2016 per the Company’s press release. 3 The entire TOP 500 report is available at argi.com by accessing the “InnerCircle” portal and using the username “2017 TOP 500” and password “data”. 4 NATA Aviation Business Journal, “Selling Your Businesses”, 3rd Quarter 2017 (available at argi.com, under “publications”) -58% jet activity, up 15% compared to 2007. Since 2007 repre- sents the peak prior to the 2008-2010 economic down- turn, this 10-year trend metric is useful to show how an airport is performing in the “New Normal” period as the economy has slowly recovered. In the Top 500, 10-year jet activity has increased an average of 5.7%, so TCL (at + 15%) is performing significantly better and is likely why this market has attracted buyer interest.2 Also indica- This 10-year trend shows how an airport is performing in the ‘New Normal’ period. Mark Chambers is Managing Partner of Aviation Resource Group International (“ARGI”), a firm specializing in developing and managing transactions involving aviation service businesses for over 40 years. Prior to partnering with ARGI’s founder Steve Dennis, Mark worked in a progression of senior management positions involving leading FBO services, Part 145 maintenance & avionics operations, and Part 135 charter and a/c manage- ment operations. He holds airman ratings up to ATP and has flown 3,600 hours as PIC in both Part 91 and 135 opera- tions, in experimental aircraft, and as a flight instructor. Mr. Chambers soloed on his 16th birthday and began his aviation career as a lineman. See argi.com for ARGI expertise, transaction experience, and publications. the seller has lost the opportunity and the buyer is left to assess the market, usually in a more conservative manner. So be a smarter seller, and know the facts in your region, in your market and on your airport. Go to the FAA and ARGI websites mentioned here, study the data, and be better prepared. Mark Chambers is Managing Partner of Aviation Resource Group International (“ARGI”), a firm specializing in developing and managing trans- actions involving aviation service businesses for over 40 years. Prior to partnering with ARGI’s founder Steve Dennis, Chambers worked in a progression of senior management positions involving leading FBO services, Part 145 maintenance & avionics operations, and Part 135 char- ter and a/c management operations. He holds airman rat- ings up to ATP and has flown 3,600 hours as PIC in both Part 91 and 135 operations, in experimental aircraft, and as a flight instructor. Chambers soloed on his 16th birthday and began his aviation career as a lineman. See argi.com for ARGI expertise, transaction experience and publications. Aviation Business Journal | 3rd Quarter 2018 79
