https://www.bizquest.com/shared/listing ... 7e0fab.pdfI’m with Richard, I’d like to take a look under the hood.
According to the graph for parts sales and assuming the forecast parts sales for 4th quarter FY2020 they sold $990K in parts.
X .55 (Ave mark up) = $544,500
There are different ways to value a business:
1. Replacement cost is going to produce a high number
2. Estimated liquidation proceeds is going to produce a much lower number.
3. Earnings (assuming they are real) are worth paying for.
How much did it cost in overhead to sell those parts?
4. Beyond current earnings, is the potential for future earnings growth, either through cost savings or growing sales.
In my opinion the right move would be a merger with Aerostar Aircraft Corporation.
The folks @ AAC have demonstrated their ability to support the Aerostar fleet, I have no doubt they could achieve some cost savings out of serving a larger fleet of aircraft.
The alternative is a continuing winding down of Mooney that ends up with an orphaned fleet.
If had Bill Gates money, I’d offer $5MM for the entire company, get the folks at AAC to get approval for the Garmin Emergency Autoland in both the Aerostar and the Mooney, and crank up the Kerrville assembly line turning out Aerostars , Mooney’s and the little Mooney trainer all powered by Lycoming i2E engines.
With the advent of G100 fuel, I think spark ignition aircraft engines are going to be around for a lot longer than conventional wisdom would expect.
Put auto-feather and rudder-boost on the Aerostars.
Offer an optional chute chute on the singles and make auto-land standard on every plane built.
Figure 100 planes a year (50 of each type) to start, ramping up to 100 each year two plus another 100/year of the little Mooney once it’s certified.
Price the Aerostars at $1.00 less than whatever Piper is asking for the Mirage, price the Mooneys (with the chute) at $1.00 less than a Cirrus.
Price the trainer at $1.00 less than a new C-182.
“Sure it’s more than a PA-28 or a C172, but it has Auto-Land!”
Heck if a flight school wants to buy ten we’ll price them like new C172s.
Would it be a way to make a small fortune in aviation? …Maybe but Cirrus has proven that there is a customer demand for new aircraft designed to be safe(r).
Customers have been willing to sacrifice performance for the safety improvements like the chute and luxury car like interior styling.
The long line to purchase a new Cirrus is a sign that there is significant demand.
I think it would be fun to use modern technology to make existing proven airframes, safer, faster than the competition, and less expensive (assuming volume production).