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Situation
The majority shareholder of a Fixed Base Operation (FBO) at a municipal airport was interested in selling the business. Annual revenues for the FBO were $6MM with an operating income of about $1.5MM. A very successful entrepreneur, the owner initially elected to manage the sales process independently. After sourcing and working with a potential buyer who continued to lower the offer price, the owner abandoned the effort. One year later he came to PVG with a request to sell the business.
Solution
PVG developed a sales and marketing campaign, and confidential memorandum as part of the sell side process for this client. By leveraging existing relationships with potential buyers, PVG was able to generate significant interest in the purchase of the FBO. Within a short period of time, six parties were identified as potential buyers, and each had requested additional information and discussion. Furthermore, the owner was involved only as a knowledge expert for the business. Not only did this save valuable time and effort, it also greatly reduced his anxiety level.
Impact
In less than six months, the deal was closed. The client received a purchase price for the business that was a full 35% more than he was able to secure independently. In his words, he was “thrilled” with the outcome.