Most business sellers are interested in disposing of their businesses as quickly as possible. But that's not how an aircraft modification and overhaul business sale works.
(article continues below)
Most aircraft modification and overhaul businesses are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.
The Best Person to Sell Your Aircraft Modification & Overhaul Business
As the owner, you are both the best and worst person to sell your aircraft modification and overhaul business. On the one hand, no one knows your business better than you do. When it comes to earnings potential, asset condition, and other considerations, you are the world's leading expert on your company. But your knowledge and personal insights about the aircraft modification and overhaul business are also the problem. Nearly all sellers have an inflated sense of their company's value. At a minimum, conduct an independent appraisal of the aircraft modification and overhaul business to gain an objective sense of fair market value.
Preparing for What's Next
The decision to sell your aircraft modification and overhaul business can't be made without adequate consideration of what will happen after the sale. If you aren't sure what's next, you could be in trouble because future plans and selling strategy are inextricably connected. In today's market, many buyers expect seller financing - a concession that might not be a possibility for sellers whose next step requires the entire proceeds at the time of the sale.
Most aircraft modification and overhaul business sellers realize they will need to offer concessions to sell their businesses. But for every concession you grant, there may be an opportunity to obtain a concession from the buyer. For example, if the buyer needs seller financing, you can leverage a five-year loan to push for a higher sales price. Although you won't see all of the proceeds upfront, you'll earn interest on the balance and realize a higher price than you would in an all cash deal. Like seller concessions, buyer concessions should be addressed during negotiations, before the preparation of a Letter of Intent.
Given your interest in exit planning and in aircraft modification and overhaul businesses, you might find these additional resources to be of interest.
If starting an aircraft modification and overhaul business is on your agenda, these guides will help you get started:
If you consider aircraft modification and overhaul businesses to be sales prospects, there's more applicable information for you elsewhere on our site. Try these useful resources instead:
If you are eager to get business succession tips for a different industry, please browse our alphabetical directory of exit planning guides below.