Selling an aviation business—whether an airline, MRO facility, or flight school—requires a strategic approach to identifying and attracting the right buyer. The ideal buyer isn’t just the one offering the highest price; they should share a synergy with your business, have the financial capability to complete the transaction, and be equipped to foster the business post-sale.
In this article, we explore how to research potential buyers, evaluate their suitability, and position your business for a successful acquisition.
How to Identify Potential Buyers
(1) Research the Aviation Industry
Understanding the aviation landscape is the first step in identifying potential buyers. The aviation industry is highly specialised, with buyers ranging from strategic industry players and private equity firms to government-backed entities looking to expand their capabilities.
Key Actions:
Analyse Competitors: Large aviation groups may be interested in acquiring your business to expand their operations, increase MRO capabilities, or integrate pilot training operations.
Study Industry Trends: Look at consolidation trends, advancements in aircraft technology, and emerging markets driving M&A activity. For example, airlines may seek acquisitions to secure maintenance operations, while manufacturers may look to acquire suppliers to mitigate supply chain risks.
Identify Active Buyers: Keep an eye on recent transactions involving aircraft leasing companies, OEMs, and airlines expanding through acquisitions.
(2) Leverage Your Aviation Network
The aviation sector is a close-knit industry where relationships matter. Your professional network can be an asset in connecting you with potential buyers.
Key Actions:
Engage Aviation Advisors: Aviation finance specialists, brokers, and M&A advisors have connections with global buyers, from private equity firms investing in aviation to sovereign wealth funds acquiring aerospace assets.
If you are interested in seeking advice for your aviation business, book a consultation call with Anna Tran, V.P. Brookfield Aviation Finance.
Industry Conferences & Trade Shows: Events such as the Paris Air Show, Farnborough, and MRO Americas are prime opportunities to network with decision-makers exploring acquisitions.
Connect with Airline & OEM Executives: Aviation professionals, including airline CFOs, MRO directors, and aircraft leasing firms, often have insights into potential buyers.
(3) Work with Aviation-Focused M&A Advisors
Aviation M&A specialists have in-depth knowledge of industry valuations, market trends, and buyer networks. They can help position your business for a successful sale while ensuring confidentiality.
Key Actions:
Hire an Aviation M&A Advisor: An experienced advisor will help identify qualified buyers, structure the transaction, and maximise the deal to ensure your business receives appropriate value.
Access Strategic Buyers: Advisors maintain relationships with airlines, aircraft lessors, MRO groups, and investment firms with an interest in aviation acquisitions.
Maintain Confidentiality: Aviation businesses often hold proprietary technology, sensitive contracts, or regulatory certifications. Advisors ensure that buyer interactions are handled discreetly.
Evaluating Potential Buyers
Identifying buyers is just the beginning—evaluating their ability to acquire, sustain, and grow the business is critical.
(1) Financial Capacity
Aviation transactions often involve significant capital due to the asset-intensive nature of the industry. It’s essential to ensure that a buyer has the financial resources to complete the acquisition.
Key Actions:
Assess Liquidity & Financing Strategy: Determine whether the buyer has sufficient cash reserves, financing agreements, or investor backing to fund the acquisition.
Evaluate Buyer’s Leverage: Avoid buyers over-reliant on debt financing, as this may create instability post-acquisition.
Verify Access to Capital Markets: Large transactions often require financing through aviation investment funds, lessors, or institutional investors.
(2) Strategic Fit
An aviation business sale should align with the long-term strategy of both parties.
Key Actions:
Review Post-Acquisition Plans: Ensure the buyer has a clear strategy for sustaining and growing the business, whether expanding an airline’s network, scaling aircraft manufacturing or increasing MRO service capacity.
Assess Regulatory & Certification Considerations: Buyers in the aviation space must comply with FAA, EASA, or other regulatory bodies. Ensure they have the necessary certifications or the ability to obtain them.
How to Attract the Right Buyer
Positioning your aviation business effectively increases its appeal to high-value buyers.
(1) Develop a Compelling Business Presentation
A well-structured Confidential Information Memorandum (CIM) highlights key aspects of your business to potential buyers.
Key Elements:
Executive Summary: Provide a high-level overview, including fleet size, service offerings, and financial performance.
Financial Metrics: Include revenue trends, EBITDA margins, and aircraft or facility valuations.
Market Position: Highlight your competitive advantages, such as exclusive contracts, regulatory certifications, or strategic partnerships.
Growth Potential: Showcase expansion opportunities, whether through new routes, additional fleet acquisitions, or technology-driven efficiencies.
(2) Highlight Competitive Advantages
Buyers seek businesses with a strong market position and sustainable revenue streams.
Key Actions:
Emphasise Unique Capabilities: If your business specialises in fleet leasing, MRO, or pilot training, highlight these strengths.
Showcase Regulatory Approvals: FAA/EASA/ICAO certifications and government contracts add significant value.
Demonstrate Customer Loyalty: Recurring contracts with airlines, lessors, or other long-term clients enhance business stability.
(3) Build a Strong Leadership Team
Buyers value businesses with competent management teams that can drive growth post-sale.
Key Actions:
Highlight Leadership Expertise: Showcase experience in airline operations, aircraft leasing, or MRO management.
Ensure Continuity: If key executives plan to exit post-sale, present a transition plan for seamless leadership succession.
Succession Planning: If the founder or CEO is stepping away, identify key personnel who will ensure operational stability.
Conclusion
Identifying and attracting the right buyer is crucial in maximising the value of your aviation business sale. By conducting thorough industry research, leveraging professional networks, and presenting your business strategically, you can find a buyer who aligns with your goals. Evaluating financial capacity, strategic fit, and operational alignment ensures a successful transaction that benefits both the seller and the future of the business.
Next Steps
Brookfield Aviation Finance specialises in selling aviation businesses. We invest significant time in vetting qualified buyers, working together with you to ensure that information is shared with the right and relevant buyers.
If you are interested in selling your aviation business in the near future, contact Anna Tran, V.P. Brookfield Aviation Finance, via anna@brookfieldav.com for an insightful discussion.
Reach out today to explore how we can support your next strategic move.
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