Buying or selling a business aircraft is a complex endeavor that involves much more than the normal capitol and tax considerations involved in equipment asset transactions. Occasionally, we see owners who make attempts to handle these transactions themselves with their existing support professionals and despite everyone's best intentions, their results vary dramatically. Seeking the assistance of a qualified aircraft broker will help to prevent a myriad of headaches down the road.
We bring to bear over 25 years of aviation experience and relationships with legal and tax professionals who specialize in aviation transactions.
Conducting a proper Pre-Purchase Inspection
Pre-Purchase inspections are used to determine that an aircraft is as advertised and in airworthy condition. Pre-purchase inspections are completed at an agreed upon maintenance facility and are normally paid for by the buyer. Any discrepancies that are discovered by the maintenance facilities are open to negotiation between buyer and seller.
Sounds simple right? Wrong. IFC has represented clients in many of these inspections and, in almost every case, saved the client thousands of dollars by recommending inspections or pursuing discrepancies that would otherwise have been overlooked.
For example, in a recent transaction where we represented the seller, the maintenance facility reported that there was 10% life left remaining on the brakes. Although this was considered 'airworthy' and therefore officially not the seller's responsibility, it became a major negotiating point to the tune of $80,000. IFC reviewed the method used to measure the brake life remaining and determined that the maintenance facility had not followed the manufacturer's procedure. After a re-measurement that we requested, the brakes tested at better than 70% life remaining. Had we not pursued this assessment, the owner could well have been pressured into needlessly replacing the brakes to the buyer's benefit.