Is it time to buy or sell a plane? These tips can help you close your transaction in a timely and cost-efficient manner.
Letters of Intent Save Time and Money Help you have a Successful Aircraft Transaction
Letters of intent can be used to address your “deal point” requirements and the other party’s “deal point” requirements before either party spends significant time and money drafting and reviewing a purchase agreement.
Purchase Agreements Should Fit Your Goals to have a Successful Aircraft Transaction
If you are a buyer who is eager to close on your purchase because you have a slot for interior refurbishment and the seller agrees to expedite their review of the purchase agreement, consider whether sending an initial purchase agreement that heavily favors the buyer meets your goal.
Your Advisors Should Understand Your Goals
It is difficult to determine who is the best advisor to hire. Ask others for recommendations of people they enjoy working with, are good at their job and communicate well.
Do Not Hoard Information when Buying or Selling a Plane
If everyone on your team reports to you, but you will be traveling for ten days on the other side of the world during a critical time in the transaction, make sure someone else also receives and timely disburses relevant information to your team.
Some Conversations are Just Talk
Beware of the new acquaintance you meet at the hangar, FBO or a cocktail party. Did the speaker want to sound knowledgeable or do they daily work to address business aviation issues?
Michelle Wade is an attorney with the law firm of Jetstream Aviation Law and counsels clients on the acquisition, financing and operation of corporate jets operated under Part 91 and Part 135 of the Federal Aviation Regulations. Jetstream Aviation Law can be found at www.JetstreamLaw.com.
The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.