Certified aviation business valuations & appraisals by Avicor Aviation

Employees and the Value of Your Aviation Business

✈ November 1, 2017, Avicor Aviation Inc.

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If you have been running your business for a while, you already know how valuable good employees can be to the ongoing operation of your business. You likely have a few key people you know you can rely on to take care of things. It might be your "right hand man (or woman)" or perhaps the heads of various departments in your aviation business. In any case, you know they will not let you down. You know they are valuable.

Or maybe you don't have people you can truly depend on. When it comes right down to the hard stuff, burning the midnight oil, or just making sure all the details are taken care of, it simply comes down to you. Either there is truly no one capable, or you may be micro-managing your business and think no one else can be capable. Or perhaps not that many employees are longer term.

Having people you can depend on is a clear asset to the daily operation of your business. Every business in every industry can run more efficiently if there are people you can rely on. This is true from the top to the bottom of the organization.

But this benefit can also accrue to and affect the value of your business.

Key Factors

One of the elements of determining the value of a business is the amount of risk the company is exposed to. Employees, as an integral part of the business, can play a significant role in this exposure. But what are some of the factors that can reduce this risk? While the list could be extensive, here are a few employee-related factors to consider:

Take a few minutes and think through your employees, or at least the key employees if your company is larger. When you think of them in respect to this list, do you net positive or negative?


If you consider each of the factors listed above, it can quickly draw your attention to areas that could affect the value of your aviation business.

Employee turnover, for example, can be a major drain on a business. Every time someone quits, that means you will have to start with someone new and they won't know the ropes right away. High employee turnover can mean you are spending more on training new personnel than you should be. And if you do have a lot of employee turnover, it might be time to take a look at why that happens. Are the people being hired really right for the job and/or the culture of your company? Is your pay competitive? What motivates the employees? Are they being asked to do things that are either too mundane or too much for them as compared with their capabilities or training?

The Positive Effect

Considering employee turnover again, if is low then it is likely that employees are more satisfied and over time have become more proficient at what they do. This is clearly a positive.

Perhaps you send some employees to training on a periodic basis to keep them abreast of changes in your sector of the aviation industry, or to expand your company's capabilities. Again, this is a clear positive, especially if that additional training translates to the ability to serve new opportunities or further support what you already do.

A positive environment where your employees are inclined to work towards building your company and are able to support the business in a way that you know you can depend on can reduce risk...and the net result is positive to the value of your aviation business.

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