Forty-one percent of mid-market letters of intent in the aviation services sector undergo a significant downward price adjustment-averaging twelve percent of total enterprise value-between the signing of the initial term sheet and the actual transfer of funds.
Standard deviations in mid-market LOI outcomes for the aviation services sector.
The number sits on the page with a cold, mathematical indifference, but the reality of it usually lands on a Tuesday morning in the eleventh week of a ninety-day exclusivity window. For Marcy Delacroix, the reality landed while she was sitting in her hangar office, a space that smelled perpetually of Jet-A and the ozone of an aging HVAC unit. She was looking at a framed photograph from , back when her ramp consisted of two Grumman Tigers and a single, dented fuel truck.
The $18.4 Million Handshake
She had built that operation into a three-site FBO network with a reputation for the fastest turns in the county. She had signed a Letter of Intent (LOI) for $18.4 million. She had already called her husband and told him the number. They had spent the weekend looking at a cabin near Lake Tahoe. She had mentally moved the money into an index fund and started thinking about what she would do on a Monday morning when there were no pilots complaining about the price of Prist.
Then the