Obtaining the Maximum Benefit from a Business Aircraft ... · G550 Market Summary Info 12 months...
Transcript of Obtaining the Maximum Benefit from a Business Aircraft ... · G550 Market Summary Info 12 months...
Obtaining the Maximum Benefit from a Business Aircraft
Sale or Acquisition
NBAA Annual Meeting and Convention
October 22, 2014
Obtaining the Maximum Benefit from a Business Aircraft
Sale or Acquisition
Brad Stancil Executive Vice President
Holstein Aviation, Inc.
Business Aircraft Operation
WHY? Competitive advantage
Increase efficiency
Grow revenue and profit
Business Aircraft Operators
Versus non-users ROE Gross revenue
ROA Net profit
Sales per employee Retained earnings
20,000 BizJets Worldwide
50% small biz 500 employees
Top 500 = 13% 7/10 1,000
BizAv Users
92% sales 91% equity
90% net income 87% employee
92 % assets $150B contribution
Flight Department Growth
Revenue Increased
Profits Customers
Customer satisfaction
Employee satisfaction
Owner satisfaction
Direct Parallel
Companies = Flight Departments
Companies = Flight Departments
Mission
• Safe and Efficient operation
– Training
– Compliance
– Personnel
– Scheduling
– Planning
Mission • Safe and Efficient operation
– Training
– Compliance
– Personnel
– Scheduling
– Planning
– ACQUISITION
– REPLACEMENT
– DISPOSAL
Marketplace Knowledge Critical for Success
• Gulfstream
• Bombardier
• Falcon
• Cessna
• Hawker
• Beechcraft
• Embraer
• SETP
Marketplace Data 80 Business Jet and Turboprop Models
Tools and Resources
• Research protocols
• Comparative aircraft data
• Ownership cost analysis
• MRO requirements
• Cash flow projections
• Performance profiles
• Detailed check lists
• Market data subscriptions
Tools and Resources
• Economic forecasts
• Transactions
• Pricing trends
• Fleet size
• Available aircraft
• Regulatory mandates
Partner for Performance
BizAv Forecasting
Mission Analysis
• Near term • Longer duration • Destinations • Frequencies • Passenger count • Equipment • Materials
Worth vs Value
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%
G550 Market Summary Info
Fleet Statistics
Percentage For Sale 6.2%
Fleet Size 450
Average Model Year 2008
Average TT 2,387 hours
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 1st to 4th Qtr (+$446,313)
Change +1.2%
Forecasting
Charter
Fuel sales
MRO
Fleet data
Single Engine Piston sales
Forecasting
Forecasting
2008 Recession - Inventory
2008 Recession - Prices
Today – Prices & Inventory
Obtaining the Maximum Benefit from a Business Aircraft
Sale or Acquisition
NBAA Annual Meeting and Convention
October 22, 2014
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
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
Expertise and Capability
• 250 Years Experience
• 56,000 Flight Hours
• 3,500 Transactions
• $8 Billion in Value
Industry Leader
Steve Fushelberger
• VP Marketing
• 30 years experience
• Cessna Aircraft
• United Air Lines / Avolar
• Rolls-Royce
• AgustaWestland
• Beech Aircraft
• MRO / FBO / Part 135
Kathryn Scott
• Contracts Manager
• 25 years Global Aircraft Transactions Experience
• Directs all aspects of the contractual and closing process
Brad Guyton
• Technical Services • Industry expert • 25 years experience • Problem prevention • Troubleshooting • Pre-Buy inspections • Export / Import (EASA) • Delivery acceptance • Maintenance management • DAR services
Focus Areas
• Acquisitions
• Brokerage
• Leasing
• Supplemental lift
• Consultation
• Recruit / Outplace
Business Aircraft vs Capital Goods
Infrequent
Complex
Regulatory
Negotiation
Research
Pre-Buy
Errors
Calendar Year 2013 5,708 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
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
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
Acquisition Process
1 • GATE 1 – Stakeholder Input
Holstein Acquisition Process
1
• GATE 1 – Stakeholder Input
2
• GATE 2 - Identification and Definition
Holstein Acquisition Process
1 • GATE 1 – Stakeholder Input
2 • GATE 2 - Identification and Definition
3
• GATE 3 – Total Cost of Ownership Calculation
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
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
The Most Critical Elements
Research
Inspections
History
Full knowledge
Creative Writing
Maintenance record – Bird Strike
Airframe log – wing & inlet repairs
Propeller log – premature prop OH
Engine log – early HSI
Creative Writing
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
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
Marketplace Data 80 BizJet and Turboprop Models
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
Holstein Brokerage Process
1
• GATE 1 – Understand Your Motivation
Holstein Brokerage Process
1
•GATE 1 – Understand Your Motivation
2
• GATE 2 – Asset Evaluation
Holstein Brokerage Process
1 • GATE 1 – Understand Your Motivation
2 • GATE 2 – Asset Evaluation
3 • GATE 3 – Market Position
Holstein Brokerage Process
1 • GATE 1 – Understand Your Motivation
2 • GATE 2 – Asset Evaluation
3 • GATE 3 – Market Position
4 • GATE 4 – Value Enhancement
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
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
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
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
Industry Leader
Industry Leader
Offset professional fee
Industry Leader
Offset professional fee
Shorten time frame
Industry Leader
Offset professional fee
Shorten time frame
Global contacts
Industry Leader
Offset professional fee
Shorten time frame
Global contacts
Comprehensive data
Summary
Solicit referrals
Stellar reputation
Experienced & Professional
Shared visions and values
Trust your gut
Summary
Ask questions
Do some homework
Be forthright
Don’t scrimp
Expand your knowledge
Discussion
Thank You
Obtaining the Maximum Benefit from a Business Aircraft
Sale or Acquisition
NBAA Annual Meeting and Convention
October 22, 2014