FBOs
Private equity cash ‘discovers’ the FBO industry
EBITDA stands for “earnings before interest, taxes, depreciation and amortization.” In the acquisition world, businesses are valued by a multiple of their

EBITDA stands for “earnings before interest, taxes, depreciation and amortization.” In the acquisition world, businesses are valued by a multiple of their EBITDA. The buzz lately is that FBOs are popular among some aggressive private equity funds, and that has led to sales on the order of eight or nine times EBITDA–a rising trend that many say cannot continue.

Large, established private equity firms such as the Carlyle Group have been interested in business aviation for the past several years, backing their opinion that the airline woes resulting from 9/11 would be a boon for private air travel. Over the past few years, smaller private equity firms have risen in stature, some say because ever more wealthy individual investors are seeking to further diversify their portfolios with another alternative to public markets.