Avionics News January 2015 - 56
legislative
B Y
J A S O N
D I C K S T E I N
AEA GENERAL COUNSEL
Tips on buying and selling
a repair station
T
here comes a time in the life of many repair
One reason for this is to avoid the liabilities of the prior
stations when they are sold. The repair station may
corporation.
be sold to the next generation of the family, a group
Liabilities for prior work can be a serious worry. Mere
of employees or an outside party wishing to invest in or
due diligence of the records may not be enough to tell
operate a repair station.
you whether the prior-accomplished work was sound,
Buying or selling a business can be a scary time. There
or whether it may result in liability claims for poorly
are so many unknowns that need to be assessed during
completed installations.
the due diligence period. But buying
or selling a repair station can be even
Buying or selling a repair station can be
more daunting because of the serious
liability and regulatory compliance
even more daunting because of the serious
issues associated with a repair station.
There are two common ways of
liability and regulatory compliance issues
transferring an incorporated repair
station business. The purchaser can
associated with a repair station.
purchase the stock of the business.
If the purchaser does this, then the
business continues to exist, and it continues to hold the
This is especially a concern for smaller repair stations,
certificate. Sellers often like this because the liabilities
where it is less likely that the repair station has a reserve to
generally stay with the corporation, and this means
address the possibility of liabilities, where legal fees would
the seller does not have to worry about retaining the
take up a disproportionate share of the business' cash flow
corporation and potentially defending against future
if litigation were to develop, and where a prior owner may
liabilities. Of course, liability concerns can be modified
have underinsured the repair station. So it is understandable
using techniques like insurance and indemnification.
that some buyers of repair stations may fear purchasing the
But for the same reason that sellers often like this
corporation and prefer to purchase the assets.
approach, buyers can be less enchanted with it. Especially
Many other factors may affect this decision, such as tax
in the case of small repair stations, buyers sometimes
decisions, asset valuation and the preferences of both parties.
want to buy the assets, rather than the entire corporation.
Most of these are common factors in any business acquisition
56
avionics news
*
january
2015
Avionics News January 2015
Table of Contents for the Digital Edition of Avionics News January 2015
Point of Communication
AEA Now
The View from Washington
International News and Regulatory Updates
Tackling Aviation's Universal Needs
Member Profile
Avionics in the Year 2025
A Conversation With...
My Life in Avionics
Marketing Tech Connections
What's Working?
Before & After
Business Basics
Debt Collection Tips
Aviation Aces
Legal Ease
Repair Stations
What's New
Avionics News January 2015 - Intro
Avionics News January 2015 - Cover1
Avionics News January 2015 - Cover2
Avionics News January 2015 - 1
Avionics News January 2015 - 2
Avionics News January 2015 - 3
Avionics News January 2015 - Point of Communication
Avionics News January 2015 - 5
Avionics News January 2015 - AEA Now
Avionics News January 2015 - 7
Avionics News January 2015 - 8
Avionics News January 2015 - 9
Avionics News January 2015 - 10
Avionics News January 2015 - 11
Avionics News January 2015 - The View from Washington
Avionics News January 2015 - 13
Avionics News January 2015 - International News and Regulatory Updates
Avionics News January 2015 - 15
Avionics News January 2015 - 16
Avionics News January 2015 - 17
Avionics News January 2015 - Tackling Aviation's Universal Needs
Avionics News January 2015 - 19
Avionics News January 2015 - 20
Avionics News January 2015 - 21
Avionics News January 2015 - 22
Avionics News January 2015 - 23
Avionics News January 2015 - Member Profile
Avionics News January 2015 - 25
Avionics News January 2015 - 26
Avionics News January 2015 - 27
Avionics News January 2015 - Avionics in the Year 2025
Avionics News January 2015 - 29
Avionics News January 2015 - 30
Avionics News January 2015 - 31
Avionics News January 2015 - 32
Avionics News January 2015 - 33
Avionics News January 2015 - A Conversation With...
Avionics News January 2015 - 35
Avionics News January 2015 - My Life in Avionics
Avionics News January 2015 - 37
Avionics News January 2015 - 38
Avionics News January 2015 - 39
Avionics News January 2015 - Marketing Tech Connections
Avionics News January 2015 - 41
Avionics News January 2015 - 42
Avionics News January 2015 - 43
Avionics News January 2015 - What's Working?
Avionics News January 2015 - 45
Avionics News January 2015 - 46
Avionics News January 2015 - Before & After
Avionics News January 2015 - Business Basics
Avionics News January 2015 - 49
Avionics News January 2015 - Debt Collection Tips
Avionics News January 2015 - 51
Avionics News January 2015 - Aviation Aces
Avionics News January 2015 - 53
Avionics News January 2015 - 54
Avionics News January 2015 - 55
Avionics News January 2015 - Legal Ease
Avionics News January 2015 - 57
Avionics News January 2015 - Repair Stations
Avionics News January 2015 - 59
Avionics News January 2015 - 60
Avionics News January 2015 - 61
Avionics News January 2015 - 62
Avionics News January 2015 - 63
Avionics News January 2015 - What's New
Avionics News January 2015 - 65
Avionics News January 2015 - 66
Avionics News January 2015 - 67
Avionics News January 2015 - 68
Avionics News January 2015 - 69
Avionics News January 2015 - 70
Avionics News January 2015 - 71
Avionics News January 2015 - 72
Avionics News January 2015 - Cover3
Avionics News January 2015 - Cover4
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