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Non-Commercial Aircraft Inspections & Maintenance w/ 25+ Recurring Clients

With $1.2M in projected revenue for 2021!

CASH FLOW
$174,945

Specifications

  • Price
    $649,000

  • Revenue
    $843,883

  • Cash Flow
    $174,945

  • Location
    Central Arkansas

  • Service Area
    Nationwide

  • Profit Margin
    21%

  • Employees
    4: 1 Owner/Manager, 1 FT mechanic, 1 mechanic as needed (hourly wage), 1 apprentice mechanic

  • Intangible Assets
    Long-term client relationships with Brokers, Aircraft Managers, pilots, and private plane owners; Low personnel overhead; reliable and knowledgeable maintenance staff with two ready for on-boarding

  • Reason for Sale
    Retirement planning

This corporate aircraft maintenance & inspection business has $1.2M in projected revenue for 2021! With 25+ recurring clients, their primary customer base consists of aircraft managers and brokers.  Aircraft maintenance accounts include routine maintenance, inspections, and annual inspections required by the FAA. Two FAA certified mechanics lead the team – one IA Certified and one AP certified. Multi-engine planes require inspections after a certain number of hours flown. Current customers allow access to a maintenance portal that shows hours logged per aircraft, giving them the capability of knowing the work that needs done in the near future and securing the work with the aircraft managers. The FAA requires a logbook entry for each inspection; this team requires payment from their customer prior to logging the inspection, ensuring full and on-time payments each time. Sale sizes range from $2k (for small maintenance jobs) to $22k for an average inspection, all the way up to $50-$60k for the larger maintenance projects.

 

In June of 2020, the business expanded into three hangers, each approximately 3,600 sq. ft. Currently, one hanger is being rented by an outside party ($2,000/month), and one hanger is a double without an inner wall. The rented hanger was built to allow the business to pursue military contracts, as those planes require a separate facility from commercial/general aviation.

 

Priced at $649,000, a buyer would see a 141% return on investment in the first year after debt payments. With ample room for growth, this business has tremendous potential!  Pursuing military contracts would boost revenue, as well as taking on ex-military aircraft mechanics in apprentice roles for 3 months and setting up satellite offices at other airports that can’t justify a full-time maintenance facility.

Business Highlights

Year Established: 2009

Location: Central Arkansas

Service Area: Nationwide

Services: Aircraft maintenance & inspections for private planes (75% multi-engine, 25% single-engine)

Clients: Aircraft managers and brokers, corporate aircraft owners, owner/operators

Certifications: WBE, SDVE

Lease: 10,800 sq. ft. triple hanger: $6,000/month; 1 hanger is rented by an outside party for $2,000/month

Reason for Selling: Retirement planning

Personnel: 4: 1 Owner/Manager, 1 FT mechanic, 1 mechanic as needed (hourly wage), 1 apprentice mechanic

Seller Training Period: 3-6 months

Growth Opportunities: Build the maintenance service revenue with the new expansion, pursue maintenance contracts with military

Current Owners’ Responsibilities: Owner 1: Manages manufacturing side of the business (not included in this sale); Owner 2: Manages maintenance side; invoicing, financials, general oversight

Financial Highlights

  • List Price: $649,000

  • Profit Margin: 21%

Assets of Business

  • Assets: $25,389

 

  • Furniture & Fixtures: $25,389
  • Intangible: Long-term client relationships with Brokers, Aircraft Managers, pilots, and private plane owners; Low personnel overhead; reliable and knowledgeable maintenance staff with two ready for on-boarding

 

*Very low overhead – mechanics prefer to purchase all of their own tools*

Cash Flow Analysis

Description of Financial StatementP&L Statement
Cash
Tax Return
Cash
Notes
20202019
GROSS SALES$843,883$897,587
Net Income Shown on Financial Statement$99,397$272,489
ADDBACKS
Compensation to Owner$96,000$0
Compensation to Owner$33,338$0Eliminated Salary
11% Tax on Owners' Salaries$14,227$0
Auto Expense$4,150$0Taxes, tags, fuel, repairs
Meals/Travel$0$7,939Personal
Miscellaneous$0$0Personal
Moving Expense$2,833$0Non-onward going
Replacement$-75,000$-75,000to replace owner position
TOTAL ADDBACKS$75,548$-67,061
Seller's Cash Flow = Total Addbacks + Net Income$174,945$205,428
Profit Margin20.73 %22.89 %
  • The current owners took over in December of 2018.

     

  • Prior to 2019, the financials of the 2 entities (manufacturing & maintenance) were combined. They did not have separate statements until 2019

Valuation

Funding Example

Purchase Price:

$649,000

$
%
OR
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OR
$
Years
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Bank Loan Needed: $

Years
%
$
$
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$

Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2020 Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2020 Cash Flow
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
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The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.