You can't sell a broke business

The Internet is a very powerful entity. AgAir Update uses it to communicate instantly with its readers, (agairupdate.com) as well as offering information 24/7 to ag-pilots around the world in almost any language. However, the Internet can also be a plethora of lies. 

Occasionally from the Internet, I pick up on a blogger that is spouting off inaccurate information about our industry. I simply can’t help myself when I post a link to their blog through our On the Net feature of agairupdate.com and AgAir Update’s eEdition. On the Net is used primarily to bring ongoing news from the Internet to the industry. 

Last month a blogger inaccurately described our industry. In a simplistic sentence describing her mental state, she did not want to kill anything, not even an insect. I can imagine her home where roaches live in a protective sanctuary.

I posted a link to her blog through On the Net and within a few hours she received 29 comments from our industry. I have no idea what she was told, but I’d be willing to bet she had a better understanding of life afterwards. 

The blogger sent AgAir Update an email, whining about our posting the link to her blog. It just goes to show if you are going to write something and post it on the Internet, you best be prepared to take the heat. The Internet is an open book and the writer becomes fair game. 

I had an unusual inquiry the other day. An operator called and asked my opinion. I was honored that he asked, but I am not sure I was the right person (even though I did have an opinion). The operator has a very successful business using two AT-602s and an AT-502. He is relatively young (47) and obviously had had another banner year. With it being the end of the season, I could tell by the nature of his inquiry he was chronically tired. 

The operator wanted to sell his business and simply fly for the new owner. This is a perfect example of how much ag-pilots love to fly their aircraft. I’ve often stated that when an operation has three or more aircraft, the owner profits better to fly a desk instead of one of the aircraft. This operator was offering an ideal opportunity. If I wasn’t already very satisfied with my station in life, I would have jumped at the chance to buy this successful operation and “run” it. 

I had my opinion on what the operator should do which was to “fish” the sell of the business through a blind classified ad in AgAir Update. This would give him an insight to what was out there in the way of what he wanted to accomplish. With three sophisticated ag-aircraft, a couple of hangars, load equipment, etc., it is going to take a considerable amount of cash to buy the business. Who has access through outright cash or borrowing power to buy his business that isn’t already involved in some sort of other business? Maybe another operator, but not likely a business man looking to change careers.

Even though his situation could be a dream come true for someone and himself, it is going to be difficult, at best, to figure out how to put the deal together. He could easily end up having to repossess the business, or even get fired from flying for what used to be his business! Of course the new owner would want a no-compete agreement and that combined with other factors is what makes this move complicated for the operator.

Are you wondering, why in the world would a successful and relatively young operator want to sell out? I once had Dennie Stokes of Arkansas tell me right after Stokes Flying Service and Mid-Continent Aircraft Sales and Service struck a deal; “You can’t sell a broke business.” Those are words you can take to the bank. 

Until next month, Blue Sky and Tailwinds...