|There are many things to consider when deciding to use a management comany or do it yourself. It really depends on the philosophy of the company that owns the aircraft.
While there is a lot of equipment to purchase as private operator, that equipment is an asset tthat can be depreciated, but also retains a certain market value. So there is always some residual value.
Also, control is a large benefit ofrunning things yourself. A friend of mine who flies a managed private aircraft recently had his aircraft down for 2.5 months for a major inspection. our aircraft had the same inspection done in 1.5 months. This was due to the management company doing the inspection themselves vs we sent our aircraft to a service center with our own ame to keep things moving along.
Also, remember that management companies tack on charges for everything they are billed for on your behalf. That lav service that is normally $100 is now $120, for example.
Running an operation yourself isnt rocket science, but you do need experence and some help from outside service providers. But someone with good experience in the business will do a better job for the owner any day over a management comany. Its the quality of service, privacy, ability to adapt quickly, and control of day to day operations and costs that really make running things yourself beneficial.
The previous poster mentioned something about difficulty of setting up an operation as opposed to the relative ease that a management company can just add another aircraft. This can be true, but ill tell you straight up that those with the right experience and smarts can get things going just as quickly, or quicker. We just replaced our craft with a new type. From the time we initially put an offer on the new (used, but new to us) aircraft to the time we were flying it was exactly 2 months. This included training, manual rewrites, importation, a major inspection, etc, etc. A management company down the road took about 6 mths to get a new challeneger into their operation.
Point is there are many variables, but the right people can do it just as cost effectively if not more than a management company. But the big thing is the owner will generally get a better experience. So, it depends on if the owner wants easy turn key type thing with a management company with easy one stop pay the bill shopping, or if they want a more personalized operation with direct control.