SANTA BARBARA, Calif., June 12, 2012 /PRNewswire/ -- Aligned with the expansion of its Aircraft Advisory services, SG Private Wealth Advisors announced the successful purchase and financing of a 2002 Gulfstream V (GV) and sale of a 604 Bombardier Challenger without the involvement nor the fees of an aircraft broker on the buyer's side.
SG Private Wealth Advisors analyzed the fleet of GVs for sale on behalf of their client, identified a GV to fit the client's specification, negotiated a 2,000,000 USD price reduction without the use of a broker on the buyer's side, and secured 20,800,000 USD in financing. Concurrent with the acquisition of the GV, SG Private Wealth Advisors successfully completed the sale of the client's 604 Challenger at 1,500,000 USD over the original broker scenario and eliminated all broker fees by transacting a private sale.
"Originally, our client had asked us to evaluate the transaction that his aircraft broker had proposed," said Dovi Frances, co-founder of SG Private Wealth Advisors. "The proposal was to purchase a 1999 GV aircraft that the broker represented and sell the 604 Bombardier Challenger to the broker for their inventory." SG Private Wealth Advisors concluded that that the 1999 GV would require an additional 3,000,000 USD for necessary warranty programs and that the 604 could sell for more than what the broker had proposed.
"Aircraft brokers are expected to be experts in aviation related transactions, but many of them are taking advantage of their clients' lack of knowledge," said Mr. Frances. "The problem is that clients have no way of evaluating comparable sales prices for aircraft, so they have no choice but to trust their broker."
Mr. Frances explains that on the buy side, it is in the broker's best interest to sell aircraft that they or their affiliates represent. On the sale side, many brokers will buy a client's aircraft for their inventory, keep a margin of over 15%, and immediately sell it at much higher price, thereby making a profit at the expense of their client's lack of knowledge. SG Private Wealth Advisors' goal is to lift this veil of ignorance.
"SG Private Wealth Advisors is introducing a new platform for aircraft sales and acquisitions that present current and future aircraft owners with an alternative to the standard broker commission based transaction," said Mr. Frances. SG Private Wealth Advisors does not have inventories of aircrafts for sale or commission based fees and can also facilitate the financing for the transaction. The firm acts as an impartial advisor and negotiates on behalf of its clients, having only their best interest in mind.
About SG Private Wealth Advisors-
SG Private Wealth Advisors is a billionaire funded multi-family office that offers a suite of advisory services to domestic and international clients. The firm's mission is to provide the benefits of a family office without burdening clients with the considerable cost of owning and operating a family office. SG Private Wealth Advisors' services include personalized solutions for wealthy individuals' private banking, insurance, yacht, aircraft, and estate needs.
For more information about SG Private Wealth Advisors visit www.sgprivatewealth.com or call 310-425-3370.
SOURCE SG Private Wealth Advisors