Selling Your Business Continued from 45 or down in the range might be lease terms and quality of facilities, there are many other characteristics that come into play, as evidenced by the sometimes frightening length of a buyer’s due diligence list. Again, it pays to assess your business like a buyer and be ready to answer questions, such as: “What is the insur- ance claim history and how do you work to minimize aircraft damage?” and “As the longtime owner/manager, who have you developed as a general man- ager to step in as you transition out?” and “What have been the environmental issues and where are the closure letters?” Earlier, I mentioned airport rank- ings and interest by buyers migrating to medium-sized markets. Prior to the 2008-2010 financial downturn, essentially all transactions were on the busiest 250 airports. Most recently, deals are exploding on smaller-but-growing airports ranked below the top 250. In fact, for airports ranking from 250 to 500, almost 20% have seen deals recently or there are deals in process. That index has never been this high; and it is growing. Recent deals on airports below the “TOP 250” have closed at Montrose, CO (MTJ: #276), Sioux City, IA (SUX: #284), and Anoka County-Blaine (ANE: #268). (Interested in where your airport ranks? See the latest data at argi.com “InnerCircle,” user name: nata and password: data) For the FBO owners on these smaller fields [I’m looking at you Lafayette, IN (LAF; #427), and you too Flagstaff, AZ (FLG: #445)], the same drivers of valuation apply to you—good financial records, a com- pelling growth story for the future of the business, good lease terms, and well-maintained facilities. Be savvy sellers to those smart buyers. Mark Chambers is Managing Partner of Aviation Resource Group International (ARGI), a firm spe- cializing in develop- ing 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 ser- vices, Part 145 maintenance and avion- ics operations, and Part 135 charter and a/c management operations. He holds airman ratings 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. Mr. Chambers soloed on his 16th birthday and began his aviation career as a lineman. See argi.com for ARGI expertise, transac- tion experience, and publications. Facilitate crew movements with CrewID® • instantly identifies crew members globally • transit airports and borders efficiently • verifies identity in real time • complies with ICAO requirements and recommendations* • crew perks Powered by *ICAO Annex 9, Annex 17 and UN Security Council Resolution 2309. www.crewid.aero 46 Aviation Business Journal | 3rd Quarter 2017
