July 24, 2017

Exclusive Representation Buys You More Than An Aircraft

When buying or selling an aircraft, many believe that engaging multiple aircraft dealers will increase their opportunities and faster materialize the best deal —but this is rarely the case. Working with a high quality and dedicated aircraft transaction specialist under an exclusive representation agreement consistently results in faster, easier transactions with better outcomes.

Here we highlight some of the key advantages working exclusively with one aircraft specialist affords buyers and sellers:

  • Tailored Relationships and Expertise: Orchestrating a successful transaction takes time, money, and expertise. The representation agreement signifies a partnership that lets the transaction specialist fully devote its resources to your deal, whether that includes marketing an aircraft for sale, or finding the perfect aircraft to purchase. The partnership also provides peace of mind to you, knowing that a team of professionals is working diligently on your behalf 24/7.

  • Global Access: Today’s aircraft market is globally scaled and technology driven. The best transaction specialists have the international reach and the high-tech tools needed for finding, valuing, buying and selling aircraft, not only for where the market is today, but where it will be at future points on a model-specific basis. These are among additional capabilities exclusive representation affords clients.
  • Qualifying Prospects: When in an exclusive partnership, both you and your transaction partner have much to gain—and lose—if time is wasted on pursuing the wrong buyer or seller. Under your exclusive arrangement, your representative can quickly qualify buyers. This eliminates false leads for clients on the sell side, and bids from buyers with exclusive representation from a professional sales specialist are taken very seriously.
  • Strengthening Your Transaction’s Reputation: Representation by a major transaction firm sends a strong message to the market. It tells potential buyers an aircraft is associated with a highly-regarded firm and is properly priced, while it signals sellers that the bidder is working with a knowledgeable team with valuation expertise. This relationship itself signals a seriousness of intent that expands marketplace opportunities and accelerates transactions.
  • Guaranteed Consistency: Whether buying or selling an aircraft, an exclusive agreement ensures consistent information is provided to the market. When multiple agents are involved, they may be working the same prospects or candidate aircraft, and may provide conflicting and incorrect information regarding either pricing or bids. This creates confusion, impedes transactions and ultimately works to your detriment.
  • Value-Added Services: An exclusive representation agreement provides you with access to a wide range of aviation services. For example, such a partnership can assist buyers in putting their aircraft into service, and advise on alternative lift solutions for sellers seeking to downsize from whole aircraft ownership.
  • Transactional Transparency: An exclusive agreement clearly states the terms and fees, along with the marketing or acquisition plan associated with the contracted transaction services. Buyers and sellers who forego exclusive representation often cite a desire to “save the commission.” But they typically pay several times that fee by paying more when they buy and receive less when they sell than do their represented counterparts.

Whether buying or selling, getting the right—and exclusive—support is key to transactional success. Having exclusive representation allows you to have complete faith that a transaction specialist is dedicating their full resources into achieving your goals, and you can rest assured your aircraft transaction experience will be a positive one.