Obtaining the Maximum Benefit from a Business Aircraft Sale or Acquisition. NBAA Annual Meeting and Convention October 22, 2014

Size: px

Start display at page:

Download "Obtaining the Maximum Benefit from a Business Aircraft Sale or Acquisition. NBAA Annual Meeting and Convention October 22, 2014"

Loraine Williamson
6 years ago
Views:

1 Obtaining the Maximum Benefit from a Business Aircraft Sale or Acquisition NBAA Annual Meeting and Convention October 22, 2014

2 Obtaining the Maximum Benefit from a Business Aircraft Sale or Acquisition Brad Stancil Executive Vice President Holstein Aviation, Inc.

3 Business Aircraft Operation WHY? Competitive advantage Increase efficiency Grow revenue and profit

4 Business Aircraft Operators Versus non-users ROE ROA Sales per employee Gross revenue Net profit Retained earnings

5 20,000 BizJets Worldwide 50% small biz 500 employees Top 500 = 13% 7/10 1,000

6 BizAv Users 92% sales 90% net income 92 % assets 91% equity 87% employee $150B contribution

7 Flight Department Growth Revenue Profits Increased Customers Customer satisfaction Employee satisfaction Owner satisfaction

8 Direct Parallel Companies = Flight Departments Companies = Flight Departments

9 Mission Safe and Efficient operation Training Compliance Personnel Scheduling Planning

10 Mission Safe and Efficient operation Training Compliance Personnel Scheduling Planning ACQUISITION REPLACEMENT DISPOSAL

11 Marketplace Knowledge Critical for Success Gulfstream Bombardier Falcon Cessna Hawker Beechcraft Embraer SETP

12 Marketplace Data 80 Business Jet and Turboprop Models

13 Tools and Resources Research protocols Comparative aircraft data Ownership cost analysis MRO requirements Cash flow projections Performance profiles Detailed check lists Market data subscriptions

14 Tools and Resources Economic forecasts Transactions Pricing trends Fleet size Available aircraft Regulatory mandates

15 Partner for Performance

16 BizAv Forecasting

17 Mission Analysis Near term Longer duration Destinations Frequencies Passenger count Equipment Materials

18 Worth vs Value

19 G550 Market Summary Info Aircraft for sale 12 months ago 9 9 months ago 11 6 months ago 16 3 months ago 26 Current 26 Average For Sale 17.6 Change +189%

20 G550 Market Summary Info Fleet Statistics Percentage For Sale 6.2% Fleet Size 450 Average Model Year 2008 Average TT 2,387 hours

21 G550 Market Summary Info 12 months ago $38,169,000 9 months ago $37,424,167 ( $744,833) 6 months ago $35,541,667 ( $1,882,500) 3 months ago $38,710,357 (+$3,168,690) Current $38,615,313 ( $95,044) Price Difference 1 st to 4 th Qtr (+$446,313) Change +1.2%

22 Forecasting Charter Fuel sales MRO Fleet data Single Engine Piston sales

23 Forecasting

24 Forecasting

25 2008 Recession - Inventory

26 2008 Recession - Prices

27 Today Prices & Inventory

28 Obtaining the Maximum Benefit from a Business Aircraft Sale or Acquisition NBAA Annual Meeting and Convention October 22, 2014

29 Holstein Acquisition Process 1 GATE 1 Stakeholder Input 2 GATE 2 - Identification and Definition 3 GATE 3 Total Cost of Ownership Calculation 4 GATE 4 Asset Vetting and Verification 5 GATE 5 Diligent and Detailed Documentation 6 GATE 6 The Transaction 7 GATE 7 Enhancing Value and Preparation for the Future

30 Holstein Brokerage Process 1 GATE 1 Understand Your Motivation 2 GATE 2 Asset Evaluation 3 GATE 3 Market Position 4 GATE 4 Value Enhancement 5 GATE 5 Execute the Recommendations 6 GATE 6 The Transaction 7 GATE 7 Manage the Human Factor 8 GATE 8 Enhance Value and Future Preparation

31 Expertise and Capability 250 Years Experience 56,000 Flight Hours 3,500 Transactions $8 Billion in Value

32 Industry Leader

33 Steve Fushelberger VP Marketing 30 years experience Cessna Aircraft United Air Lines / Avolar Rolls-Royce AgustaWestland Beech Aircraft MRO / FBO / Part 135

34 Kathryn Scott Contracts Manager 25 years Global Aircraft Transactions Experience Directs all aspects of the contractual and closing process

35 Brad Guyton Technical Services Industry expert 25 years experience Problem prevention Troubleshooting Pre-Buy inspections Export / Import (EASA) Delivery acceptance Maintenance management DAR services

36 Focus Areas Acquisitions Brokerage Leasing Supplemental lift Consultation Recruit / Outplace

37 Business Aircraft vs Capital Goods Infrequent Complex Regulatory Negotiation Research Pre-Buy Errors

38 Calendar Year ,708 transactions 596 new jets 350 new turboprops 4,762 transactions 2,986 used jets 1,776 used turboprops 16.6% new sales 83.4% used sales

39 Client Benefits Comprehensive data In the market daily 3,500 transactions Broad experience OEMs Airframe (fixed 7& rotary) Propulsion Fractionals MRO / FBO Parts 91 / 135 / 121

40 Holstein Acquisition Process 1 GATE 1 Stakeholder Input 2 GATE 2 - Identification and Definition 3 GATE 3 Total Cost of Ownership Calculation 4 GATE 4 Asset Vetting and Verification 5 GATE 5 Diligent and Detailed Documentation 6 GATE 6 The Transaction 7 GATE 7 Enhancing Value and Preparation for the Future

41 Acquisition Process GATE 1 Stakeholder Input 1

42 Holstein Acquisition Process 1 GATE 1 Stakeholder Input 2 GATE 2 - Identification and Definition

43 Holstein Acquisition Process 1 GATE 1 Stakeholder Input 2 3 GATE 2 - Identification and Definition GATE 3 Total Cost of Ownership Calculation

44 Holstein Acquisition Process GATE 1 Stakeholder Input GATE 2 - Identification and Definition GATE 3 Total Cost of Ownership Calculation 4 GATE 4 Asset Vetting and Verification

45 Holstein Acquisition Process GATE 1 Stakeholder Input 1 GATE 2 - Identification and Definition 2 GATE 3 Total Cost of Ownership Calculation 3 GATE 4 Asset Vetting and Verification 4 GATE 5 Diligent and Detailed Documentation 5

46 The Most Critical Elements Research Inspections History Full knowledge

47 Creative Writing Maintenance record Bird Strike Airframe log wing & inlet repairs Propeller log premature prop OH Engine log early HSI

48 Creative Writing

49 Holstein Acquisition Process 1 GATE 1 Stakeholder Input 2 GATE 2 - Identification and Definition 3 GATE 3 Total Cost of Ownership Calculation 4 GATE 4 Asset Vetting and Verification 5 GATE 5 Diligent and Detailed Documentation 6 GATE 6 The Transaction

50 Holstein Acquisition Process 1 GATE 1 Stakeholder Input 2 GATE 2 - Identification and Definition 3 GATE 3 Total Cost of Ownership Calculation 4 GATE 4 Asset Vetting and Verification 5 GATE 5 Diligent and Detailed Documentation 6 GATE 6 The Transaction 7 GATE 7 Enhancing Value and Preparation for the Future

51 Marketplace Data 80 BizJet and Turboprop Models

52 Holstein Brokerage Process 1 GATE 1 Understand Your Motivation 2 GATE 2 Asset Evaluation 3 GATE 3 Market Position 4 GATE 4 Value Enhancement 5 GATE 5 Execute the Recommendations 6 GATE 6 The Transaction 7 GATE 7 Manage the Human Factor 8 GATE 8 Enhance Value and Future Preparation

53 Holstein Brokerage Process 1 GATE 1 Understand Your Motivation

54 Holstein Brokerage Process 1 GATE 1 Understand Your Motivation 2 GATE 2 Asset Evaluation

55 Holstein Brokerage Process GATE 1 Understand Your Motivation GATE 2 Asset Evaluation GATE 3 Market Position

56 Holstein Brokerage Process GATE 1 Understand Your Motivation 1 GATE 2 Asset Evaluation 2 GATE 3 Market Position 3 GATE 4 Value Enhancement 4

57 Holstein Brokerage Process 1 GATE 1 Understand Your Motivation 2 GATE 2 Asset Evaluation 3 GATE 3 Market Position 4 GATE 4 Value Enhancement 5 GATE 5 Execute the Recommendations

58 Holstein Brokerage Process 1 GATE 1 Understand Your Motivation 2 GATE 2 Asset Evaluation 3 GATE 3 Market Position 4 GATE 4 Value Enhancement 5 GATE 5 Execute the Recommendations 6 GATE 6 The Transaction

59 Holstein Brokerage Process 1 GATE 1 Understand Your Motivation 2 GATE 2 Asset Evaluation 3 GATE 3 Market Position 4 GATE 4 Value Enhancement 5 GATE 5 Execute the Recommendations 6 GATE 6 The Transaction 7 GATE 7 Manage the Human Factor

60 Holstein Brokerage Process 1 GATE 1 Understand Your Motivation 2 GATE 2 Asset Evaluation 3 GATE 3 Market Position 4 GATE 4 Value Enhancement 5 GATE 5 Execute the Recommendations 6 GATE 6 The Transaction 7 GATE 7 Manage the Human Factor 8 GATE 8 Enhance Value and Future Preparation

61 Industry Leader

62 Industry Leader Offset professional fee

63 Industry Leader Offset professional fee Shorten time frame

64 Industry Leader Offset professional fee Shorten time frame Global contacts

65 Industry Leader Offset professional fee Shorten time frame Global contacts Comprehensive data

66 Summary Solicit referrals Stellar reputation Experienced & Professional Shared visions and values Trust your gut

67 Summary Ask questions Do some homework Be forthright Don t scrimp Expand your knowledge

68 Discussion

69 Thank You

70 Obtaining the Maximum Benefit from a Business Aircraft Sale or Acquisition NBAA Annual Meeting and Convention October 22, 2014

Paperless Aircraft Operations

IATA s initiative on: Paperless Aircraft Operations August 2013 1 IATA s paperless initiatives Passenger Operations Reservations, Ticketing, and Airport Processes e-ticketing Boarding Pass on line Check-in