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5 Key Steps to Maximise Your Flight School Value

ANNA TRAN

Selling a flight school isn’t just about finding a buyer; it’s about capturing the best value of what you’ve built. Whether you’re looking to retire, move on to new ventures, or simply explore your options, there are strategic steps that can make a big difference in your final sale price. The VP of Brookfield Aviation Finance ANNA TRAN brings years of experience in M&A transactions and has shared valuable insights gained throughout her career. This article covers her recommendations on what a buyer must consider to maximise one’s flight school’s value. She emphasises the importance of consulting experts to ensure this life-changing decision is made with thorough expertise and precision.

 Let’s make sure your exit strategy sets you up for success. 




 

  1. Streamline Your Financial Records  

Financial performance is one of the most important factors when it comes to valuing your company. Although past performance doesn’t determine 100% of the value of your business, potential buyers will look closely at your past financial figures to assess the stability, trend and profitability of your business.   

Having attractive financial records for at least the last 3 years is crucial, not only to show transparency to buyers but also to help them see the potential of your school. Make sure your financial statements including profit and loss statements, balance sheets, and cash flow statements are current and accurate. 

 




2. Boost Your Reputation and Customer Base 

Your flight school’s reputation is a significant component of its value. Buyers will look at your students' safety standards and passing rate records to evaluate the quality of your training programs.  Besides, building strong customer loyalty and expanding your client base will have a direct impact on the valuation. 

 If you haven’t done so already, start building partnerships with airlines, other training academies, and universities or colleges to expand your revenue streams. Having a steady, strong and diverse number of good-quality customers will always positively influence the valuation.  





 

3. Create An Inhouse Maintenance Solution  

Having in-house maintenance helps you to have more control over the operational activities. And for strategic buyers, who think of expansion, this aspect is even more critical to them. From our experience, if a flight school relies on 3rd parties for their maintenance services, buyers will decrease their valuation significantly, and some strategic buyers will even pass.  

Hence, if you start thinking about selling your school, creating your in-house maintenance is the key to giving stability to the business. Besides it channels a strong message to potential buyers that your business has a solid foundation for them to take over and allow them to take the business to the new high.  




 

4. Work on Your Succession Plan 

Strategic Buyers value more for a business that can run smoothly without constant oversight from the owner. Building a strong management team will help ensure continuity after the sale. 

If you haven’t a succession plan in place, start looking at any “superstar”, who can potentially take up the leadership role. Maybe a chief pilot or general manager, who can start handling more day-to-day operational responsibilities and client relationships. 

Important note to bear in mind that buyers want to make sure the school will continue thriving without your presence, and even after the day you exit the company.   





5. Profitability and Growth Strategies. 

Most buyers value profitable businesses, especially ones that have demonstrated consistent growth. The more profitable the business, the higher its valuation can be. 

In addition, having clear financial records to illustrate that financial metrics align with this growth, specifically Revenue, Gross profit, and EBITDA. Also, look at the Debt-to-Equity (D/E) ratio. Many businesses have an unhealthy D/E as they suffer from the pandemic, which could lead to a much lower valuation. 

If you are thinking of selling your business, look at ways to increase profit margins, attract quality clients, and enhance operation effectiveness. Flight schools with strong growth strategies will add significant weight to the valuation.   

To learn more about key metrics for business valuation check out this article  

 

In conclusion, preparing your flight school for sale requires strategy and attention to detail.  

Each of these steps plays a crucial role in ensuring you capture your business’s full value. Taking these steps early will increase your chances of a smooth and profitable exit. 






 

Ready to Optimise Your Sale?



Schedule a call with Ms. Anna Tran – VP of Brookfield Aviation Finance) to discuss how we can implement these strategies and enhance your business’s worth before you go to market.  

A short exploratory call can make all the difference in your exit success. 


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