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When a client calls me about buying a new or pre-owned jet, it's usually a high-net-worth individual or an aviation director for an established flight department. With smaller aircraft, the owner may also be the pilot.No matter who's calling, they almost always have a make and model in mind. Maybe they've flown on that type of airplane, know someone who owns one or have simply developed a preference. Perhaps they already operate an aircraft and are ready to move into something newer or larger.Buyers often come in with an airplane already in mind. My first job is to understand the mission.Where are they flying and with whom? For business or pleasure? How often? Domestic or international? Range is usually high on the list, so it's important to identify frequent city pairs. After all, flying between JFK and LAX or DEN to LHR requires a longer-range aircraft than flying shorter hops into smaller regional airports. In those cases, weight, runway length and performance may matter more.We also get into cabin size, baggage, international travel, expected annual use and budget.Of course, a buyer can purchase a longer-range jet to cover nearly every possible trip. But then they have to decide whether the additional acquisition and operating costs make sense for the way they actually fly. On average, I try to find an airplane that fits 80% of the mission.Sometimes the budget changes as we go through that process. As an example, I've had clients come in thinking they wanted an older jet. Then we start looking at the technology, potential obsolescence and how old that airplane will be when they eventually go to sell it. In some cases, spending more for something newer makes more sense.There's also only so much you can learn from brochure specifications and photos. At some point, you need to get inside the airplanes and see them.Recently, a first-time buyer contacted me convinced he wanted a particular make and model. We went through his mission and looked at several planes that could do the job. Once he started seeing and flying the different options, his thinking changed. Fit and finish played a big role, so he ended up buying a different aircraft altogether.How often do people change their minds? In my 25-plus years of experience, it happens more often than people think. In this early stage of the acquisition process, much of my role as an advisor — at least for first-time buyers — is about education and how purchasing decisions affect the long term.Building the acquisition teamSoon after we identify the mission and budget, we assemble the larger acquisition team. I like to do this early because once we find the right airplane, things can start moving pretty quickly.Who needs to be involved? It depends on the client and how they plan to operate the aircraft. The team is made up of an aviation attorney, tax and financial advisors, technical representatives, an insurance broker and, if needed, a lender.Not everyone needs to be actively working on the deal from day one. But I want the key players identified and aware of what's happening so they're ready when we need them. A delay in one area can ripple through everything else.On a recent large-cabin acquisition, we brought in the client's new aircraft management company about midway through the project because they needed time to work through insurance, crew, training and everything else required to get the airplane into service. Waiting until closing would have been too late.Making the offerOnce we find an airplane the client wants to purchase, we look closely at the market to determine what makes sense for the offer. A lower asking price doesn't necessarily mean it's a better buy. We evaluate whether there's any maintenance coming due, differences in equipment or other things that affect the value, such as interior or exterior finishes.We provide comparable sales and track what else is available, and what's happening with that particular make and model.Finding the right aircraft and negotiating the offer is where your advisor can make the largest impact and offer valuable insights. It rarely happens, but if a client says to me, "Mike, I understand what you're telling me, but I really love this airplane and I'm willing to pay more," I'll support it, as long as they understand where the price sits versus the market.But I'm not doing a deal just to do a deal.Price isn't the only reason we might stop pursuing an aircraft. We may get into the records and find a large maintenance program buy-in, a major inspection coming due or damage that wasn't understood when we started. Even an interior can turn into a much larger project once you see the airplane in person.In a competitive situation, price may not be the seller's only consideration. The seller may be weighing contingencies, the proposed timeline and whether the buyer can perform.Finally, when we're ready to make an offer, we prepare a letter of intent, or LOI, that lays out the offer terms. It includes the purchase price and deposit, along with some of the ground rules for the transaction. A well-crafted LOI can ultimately save time with the next step in the process.Once the LOI is accepted, counsel works through the purchase agreement. The purchase agreement removes as many of the "gray areas" as possible, turning them into black-and-white deal points that both parties agree upon. Every agreement is different, and aviation counsel will help advise the buyer on the specific terms and conditions being negotiated.Before the buyer signs, we do as much due diligence as we can, including reviewing the aircraft's history, pedigree, maintenance and records. Once the deposit becomes nonrefundable, there may be limited ways to exit the transaction.The pre-buy inspectionA pre-buy inspection is an important part of buying a pre-owned aircraft. On a midsize or large jet, a pre-buy can take a couple of weeks or longer. Timing also depends on the maintenance facility and when we can get the airplane into the shop.The scope of the inspection will depend on the aircraft and what we specified in the LOI and purchase agreement. But this is where we "get into the weeds" and take a much deeper look at what we're buying.The maintenance records (e.g., logbooks) are a big part of it. We're looking at the aircraft's history, maintenance status and previous repairs, along with the condition of the airplane itself. Depending on the aircraft and the scope we've agreed to, the inspection can get into the engines, airframe, avionics and other systems.While there may be a surprise in a pre-buy, most issues — what we call squawks — are fixable.Say corrosion is found. That may be repairable, but the repair could result in a nonstandard inspection that follows the airplane. What you typically don't want is for a technical variance or significant repair to become part of the airplane's history and come up again when the owner wants to sell.At the end of the day, what I want to know is whether the fix leaves us with something we're going to have to explain later. In this situation, my advice to clients is simple: "When you're explaining, you're losing."Entry into serviceThe goal is to have the airplane ready to use as soon as the transaction closes, and getting to that point takes a true team effort.At closing, the escrow, title and registration work is completed, funds need to be in place and insurance has to become effective at the right time. Additionally, any liens need to be cleared so the buyer receives clear title. Once everything is ready, the funds move, the required documents are filed and ownership transfers.Delivery is the handoff, and entry into service is the first flight. Whenever possible, we try to make that a business flight with the owner, as that timing can matter for tax purposes, including depreciation.By then, the purchase price has long been negotiated, the inspection is behind us and the paperwork is complete. But that first flight is where all of the earlier decisions get tested. Did we choose the right airplane for the mission? Did we understand the maintenance exposure? Was the team ready? Did it all come together on the timeline we needed it to?If we did our job well, the owner should not be thinking about any of that when they lift off on that first flight. They should simply be using the aircraft the way they intended from the beginning.About the authorMike Mikolay, with 25-plus years in business aviation, has facilitated 950 aircraft transactions worth more than $14 billion. The founder and CEO of Mikolay Jet Group, he has held key roles in reputable aviation organizations, including serving as a senior executive at one of the world's top three brokerage and consulting firms.