{"id":6581,"date":"2022-06-10T15:23:04","date_gmt":"2022-06-10T15:23:04","guid":{"rendered":"https:\/\/helitrader.com\/?p=6581"},"modified":"2023-06-08T19:04:41","modified_gmt":"2023-06-08T19:04:41","slug":"what-to-look-for-in-a-helicopter-broker-or-dealer","status":"publish","type":"post","link":"https:\/\/helitrader.com\/what-to-look-for-in-a-helicopter-broker-or-dealer\/","title":{"rendered":"What to look for in a helicopter broker or dealer"},"content":{"rendered":"

There are a lot of choices when it comes to finding the best partner to help you navigate the marketing, regulatory, tax, customs, import\/export, and other aspects of buying or selling a helicopter for the best possible price.

To start, there are basically two types of partners you can choose from: an aircraft broker, or an aircraft inventory dealer or distributor. There are several differences between the two that are worth considering.

Inventory dealers or distributors, much like car dealers, are businesses that buy or trade aircraft inventory for resale and may also distribute brand new or certified pre-owned helicopters from OEMs. The FAA grants dealers \u201cDealer Registration Certificates,\u201d which act as temporary registration documents that the dealer can use between the time they acquire an aircraft and sell it.

\u201cA dealer buys and resells aircraft, taking actual liability and risk to provide a complete service to the client,\u201d explained Aur\u00e9lien Blanc, partner at Rotortrade<\/span><\/a>, a helicopter inventory dealer and OEM distributor. \u201cWe act as principal towards each of our clients, committing our own capital, assuming risk liabilities, and carrying the cost of the asset until resell.\u201d

Brokers, much like real estate agents, are businesses or individuals who help a buyer or seller with the aircraft transaction. They come in all shapes and sizes, from a person working out of a home office, to a brick-and-mortar office with a hangar and aircraft on site. Brokers typically work on a fixed fee of the aircraft sale.

\u201cThere are all kinds of brokers out there, and the same with dealers \u2014 to some extent,\u201d said Jamie Chalkley, joint managing director at Eastern Atlantic Helicopters<\/span>.<\/a> \u201cYou simply have to do your research to find the right fit for you.\u201d<\/p>

\"\"
A great place to start your hunt for your broker or dealer is visiting the \u201cCompanies\u201d page here on Helitrader.<\/figcaption><\/figure>

Research is Key<\/strong><\/big><\/strong>

Chalkley recommends buyers and sellers take the time to thoroughly research their partner in aircraft transactions. Google them, he suggests. The business should appear in a few places on the internet, not just its own website, to prove expertise and experience in the industry.

\u201cThis research can be particularly hard for someone who doesn\u2019t know the industry because there is a new breed of broker out there \u2014 where they can easily put up a fancy website and online showroom with lots of aircraft they don\u2019t own or operate,\u201d said Chalkley.

\u201cAt the same time, there are some businesses that are old school with less flashy websites, but they\u2019re very reputable,\u201d he added. \u201cSo, I recommend looking deeper. That business or person should appear elsewhere on the web or media with aircraft they\u2019ve operated or things of interest they\u2019ve done in the industry to show their experience and credibility in the field.\u201d

Another thing to research is the broker or dealer\u2019s experience and expertise with the aircraft. The broker or dealer should be very technically familiar with the aircraft type, whether they\u2019re helping a buyer or seller. If you\u2019re looking for a partner to sell your aircraft, ask about their experience with that type; at the same time, watch for key questions you should be asked, including: Why are you selling it? Where was it maintained? And how was it operated?

\u201cIf a seller comes to me, I check them out,\u201d said Chalkley.<\/p>

\u201cWhen I take on the aircraft, my reputation is on the line. I get copies of the run sheets to scan and see what the maintenance quality is like. I ask for photographs to see condition. Putting my name to it\u2026 I want to represent aircraft that are accurately represented and are good value. These, in my opinion, are signs of a reputable partner.\u201d<\/strong>
Jamie Chalkley, joint managing director at Eastern Atlantic Helicopters<\/p><\/blockquote>

Buyers can also identify a good aircraft transaction partner by the questions asked. A good broker or dealer will ask what you plan to do with the aircraft you seek to buy; if you have experience with the aircraft; if this type of aircraft can be maintained in your area, etc. This is all to ascertain if you are a good fit for the aircraft, or if perhaps a different aircraft would better meet your needs.

A broker with a strong knowledge and understanding of the aircraft and its similar models will do a much better job of helping you find the right aircraft for you, Chalkley said. It\u2019s in their best interest to ensure you\u2019re happy with what you buy, not just that you buy.

\u201cThey should also understand the transaction,\u201d he added. \u201cThey should be familiar with escrow. They should be familiar and happy to talk with lawyers and attorneys and financial institutions. They should have a strong understanding of shipping, tax and VAT, import\/export details, and be very comfortable with putting together, writing, and interpreting contracts. If they hesitate on expressing comfort and understanding of any of these, that\u2019s a good sign to look elsewhere.\u201d

In addition to Chalkley\u2019s advice, Rotortrade\u2019s Blanc recommends asking about how that potential partner will support you with logistical, technical, engineering, legal, and financial support in your aircraft transaction.

\u201cBuyers and sellers should look for someone who does more than just put two parties in contact,\u201d noted Blanc. \u201cThey should look for someone who can support them during the inspection by being physically present, and show local knowledge of the market and of rules of export-import in case of cross-border transactions. They should find someone familiar with logistics implications and someone strong enough to ensure a smooth sale, despite issues at delivery or any other complication.\u201d<\/p>

\"\"
Experts recommend that buyers and sellers take the time to thoroughly research aircraft transaction partners.<\/figcaption><\/figure>

Red Flags<\/strong><\/big><\/strong>

Just as there are key positive things to seek in a broker or dealer, there are also pitfalls to avoid.

\u201cChecking the history and size of the organization versus the number of helicopters advertised can give buyers and sellers some warning \u2014 though that alone is not sufficient,\u201d said Blanc. \u201cThe lack of a physical office, no online presence, and no representation or exhibition at airshows are also factors that indicate a weakly capitalized company, which is something to look out for when dealing with expensive assets with high liabilities.\u201d

Also, is there an actual company employee who is close to the aircraft? And can they get you information on it swiftly while also responding to your questions expeditiously? If not, this is a red flag. While the market is global, helicopters have limited range and are local in nature. Being able to provide local support and industry knowledge is critical, added Blanc.

Chalkley recommends also looking at a company\u2019s overall aircraft-to-staff ratio. If a company has 25 to 30 aircraft all around the world listed for sale, but only one or two people in a single location, chances are high that neither are very informed on details about every aircraft.

Another red flag is when an aircraft is listed by multiple parties. While this might be the owner\u2019s strategy, you as a buyer run the risk of working with a broker that is not as informed on the aircraft as one that has exclusive sales rights. It can also lead to a bidding war and higher chances of a bad outcome.

Another big warning sign is if the broker or dealer is only posting ads for their aircraft on free sites. Serious businesses have established marketing strategies to reach potential buyers where they are, and that includes paid advertising. If a partner you\u2019re researching only posts ads in places where there is no cost to advertise, you run the risk of poor response.

\u201cIn the end, you\u2019re going to find what look like some red flags everywhere, but look at all the other sides of a broker or dealer,\u201d said Chalkley. \u201cIf you have mostly green flags and can mitigate the red ones, chances are you\u2019ve found a good match.\u201d<\/p>","protected":false},"excerpt":{"rendered":"

There are a lot of choices when it comes to finding the best partner to help you navigate the marketing, regulatory, tax, customs, import\/export, and other aspects of buying or selling a helicopter for the best possible price.<\/p>\n","protected":false},"author":2,"featured_media":6587,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[81],"tags":[],"class_list":["post-6581","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-selling-a-helicopter","entry"],"acf":[],"yoast_head":"\nWhat to look for in a helicopter broker or dealer - HeliTrader<\/title>\n<meta name=\"description\" content=\"Find the best partner for your helicopter buying or selling journey. 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