Things to Consider When Selling an Air Charter Company

Michael Wildes

Friday, May 13, 2022 at 08:44 AM ET

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One unique characteristic of a charter company is that it has an air carrier certificate. [FLYING Archives]

Key Takeaways:

Selling an air charter company generally follows standard business sale practices, involving an investment banker to value the company and identify potential buyers like competitors, vertical partners, or investors.
The air carrier certificate is a unique and crucial asset for buyers, as it cannot be sold directly but is acquired by purchasing the entity that holds it, thus avoiding a complex and lengthy application process.
Valuation encompasses additional key assets, including human capital (pilots, staff), aircraft (owned or leased), brand reputation, operational authorizations, customer contracts, and the client base.
For accurate pricing and tax purposes, sellers must meticulously categorize and appraise both tangible assets (e.g., physical property, equipment) and intangible assets (e.g., brand, intellectual property, customer relationships).

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Selling an air charter company is not much different from selling any other company, save for a few things.

In general, if someone is looking to sell their company, one of the first things to do is hire an investment banker. They’ll be able to prepare the financial information for the business to determine a valuation for the company, which the seller can then use to go out to the market and identify potential buyers or acquirers from the company.