Aircraft Acquisition Transaction Team
Build a four-specialist team before purchasing a private aircraft
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 5
- Confidence
- 99%
The framework assembles four specialists before an aircraft purchase: a broker, aviation attorney, aviation tax consultant, and, when debt is required, a financier. The broker acts as quarterback by finding aircraft, coordinating the process, and arranging pre-buy inspections. The aviation attorney handles FAA-specific law and transaction structures that a general in-house lawyer may not know. The aviation tax consultant addresses ownership entities, leases, subleases, deductions, and the boundary between private operation and illegal charter activity. The financier then solicits suitable lenders and structures rate, amortization, down payment, and leverage around the buyer's objectives. Coordinating these roles early reduces avoidable legal, mechanical, tax, and funding surprises before the transaction becomes difficult to unwind.
Origin
Extracted from Masters in Business when Preston Holland answered what he tells someone considering a first aircraft purchase.
Core principles
- 01Aircraft transactions require domain-specific expertise
- 02The broker quarterbacks discovery and due diligence
- 03General legal and accounting knowledge does not replace aviation specialization
- 04Financing should be competitively matched to the buyer's goals
How to run it
- 1
Appoint the Broker
Choose an aircraft broker to define requirements, find candidates, coordinate negotiations, and quarterback the acquisition process.
Pro tip Select a broker with transaction experience in the target aircraft class.
Watch out Do not let enthusiasm for one listing replace a structured market search.
- 2
Retain Aviation Counsel
Engage an attorney who regularly handles FAA rules, aircraft ownership, registration, and aviation transactions.
Pro tip Have aviation counsel collaborate with the buyer's existing legal team.
Watch out A capable general attorney may still lack the necessary FAA knowledge.
- 3
Add an Aviation Tax Specialist
Use a specialist to design compliant ownership, leasing, and intercompany arrangements and evaluate available tax treatment.
Pro tip Involve the specialist before creating the ownership entity or signing documents.
Watch out Poorly structured leases can create tax problems or resemble illegal charter operations.
- 4
Arrange Financing
If debt will be used, select a financier or lender capable of handling the aircraft's age, size, and intended structure.
Pro tip Run a competitive request-for-proposal process across appropriate lenders.
Watch out The buyer's usual bank may reject older or smaller aircraft.
- 5
Coordinate Due Diligence and Closing
Assign responsibility for pre-buy inspection, legal review, tax structure, funding, and closing conditions. Require the team to resolve conflicts before funds are released.
Pro tip Use a shared closing checklist with named owners and deadlines.
Watch out Do not close with unresolved inspection findings or unclear operating structures.
In the wild
A family office hires a broker to identify aircraft and manage the pre-buy inspection, aviation counsel to review FAA and ownership issues, a tax consultant to design compliant leases between entities, and a financier to solicit lenders willing to fund an older light jet.
→ The buyer reaches closing with mechanical, legal, tax, and financing risks assigned to qualified specialists.
A buyer's relationship bank is unwilling to finance a smaller, older aircraft. A specialist financier approaches multiple suitable lenders and compares rate, amortization period, down payment, and leverage against the family office's liquidity goals.
→ The buyer obtains financing aligned with the asset and capital strategy instead of abandoning the purchase after one rejection.
Common mistakes
Using Only Existing Advisers
In-house counsel and a general CPA may be excellent in their fields while lacking FAA, aviation-tax, and aircraft-transaction expertise.
Skipping the Pre-Buy Inspection
Failing to coordinate rigorous mechanical due diligence can leave the buyer responsible for expensive undiscovered issues.
Calling Only One Bank
A relationship bank's terms or refusal may not represent the specialist aircraft-finance market.
Is it for you?
Best for
Individuals, family offices, and companies preparing to buy and possibly finance their first aircraft.
Not ideal for
People using charter or membership services without acquiring an aircraft.
From the transcript
“Assemble a good transaction team. That is the number one thing that you have to do.”
“Your transaction team typically looks like person number one is your broker. They're going to be your quarterback.”
“So you need to get an aviation specific attorney”
From the episode
At The Money: What Does it Take to Buy Your Own Jet?