The Bus Transportation Industry
One of the biggest American industries is the shuttle bus industry. The transportation industry is like no other, and if you already own a shuttle bus company, or any other business in the industry, you should already know that.
The shuttle bus industry is an essential branch of modern transportation and has a great impact on today’s American society and economy.
A Short History of the Shuttle Bus Transportation Industry
Nowadays, there is a tendency to associate buses with a lot of different industries, from school buses to public transportation line or rental services that offer coach bus transportation service for long distance group trips. In fact, the shuttle bus has a long and interesting history and has evolved over a long period of time. To better understand this industry’s dynamics in today’s transportation industry, let’s look at the history of the shuttle bus branch. In the past, before the invention of gas engines, horse-drawn chariots and carriages were used by wealthy and powerful people to fulfill their transportation needs. These horse-drawn carriages were designed to transport 8-10 people at a time. As the earliest forms of bus services developed, getting from one point to another became easier than ever, and the fast technology improvements lead to a fast development of the industry.
Buses are now one of the most affordable ways to travel, especially for groups. The world’s biggest sports teams, rock bands, presidential candidates and political figures rely on bus transportation to fulfill various transportation needs.
The shuttle bus industry is a competitive one, and businesses are continuously growing within a safe and reliable environment.
Buying or Selling a Shuttle Bus Business
Transferring ownership of a company is one of the most important decisions a business owner will ever have to make. If you have a shuttle bus business for sale, consider that, if the process of selling or buying a shuttle bus business were science, things would have been a lot easier.
When it comes to making important changes, like selling or a buying a shuttle bus business, it is recommended that you obtain a third-party evaluation from a trusted advisor that understands how to correctly value a business in the transportation industry.
That’s where the Tenney Group can help. Request a consultation with us, and find out how we can help you get the correct valuation for the business you’re looking to buy or sell.
Selling Your Shuttle Bus Business
At one point or another, every company will change hands. When it comes to selling a shuttle bus transportation business, many business owners wait until they are forced to sell, and this is one of their biggest disadvantages.
Most of the time, sellers don’t understand how buyers think, and the sale process is not as rewarding as it can be. Maximizing the timing of the sale can have a great impact on its ROI.
The success of your shuttle bus company doesn’t come easy. There are many variables that can influence the success of your exit, including a proper business valuation, consulting financial advisors and transaction tax strategists and working with a business broker that clearly understands the transportation industry. There are also still many reasons why buyers will undervalue your bus business:
- Unaddressed Company Specific Risks – Uncertain economy, industry disruptions, weak management team, technology that doesn’t fit the growing industry challenges, poor cash flow
- Insufficient evidence and ability to support fair market value
Usually, when bus business owners go to market to sell a bus business, it is the first time they have gone through a business sale process.
When you, as a shuttle bus business owner understand how potential buyers in the transportation industry think, you increase the chances of avoiding unforced transaction errors and make the entire process a rewarding experience.
Start Planning Now for a Rewarding Sale
Buyers and sellers of shuttle bus businesses often find themselves on different pages. Even if selling your shuttle bus business is years away, talking with a specialist at the Tenney Group can help you ensure you will be in a strong position to choose what is right and best for you and for your company. Regularly determining the value of your transportation business, and by regularly we mean 12-18 months, will provide you the tools and insight to improve your bus business value and avoid a decision that will affect future transactions.
Buying a Shuttle Bus Business
Knowing how to start a shuttle bus company requires education and significant capital. You need to research the market, set clear goals and objectives and plan before acquiring a business. Most of the time, business owners in the transportation industry are reluctant to acquire a company because they don’t know the process and the benefits of growing through acquisition.
Never limit yourself! Stay educated about the factors that can influence the selling/buying process, explore offers and be prepared for anything that will ensure you protect the value of your business.
Understanding the Value of Your Business
Every day, business owners in the transportation industry are confronted with financial opportunities, or at least, this is how they see an unsolicited offer. Selling a shuttle bus business is, most of the time, done out of convenience when the seller receives a serious and tempting unsolicited offer. This is the reason why performing a business valuation should be the first step in the sale process of your shuttle bus company. As tempting as an offer may be, it could still be under your company’s value.
Understanding the true value of a business when you have a shuttle bus business for sale plays a crucial role in every financial decision you will have to make, from the sale itself, to transferring the business to a family member. Even if you don’t intend to make a big move right now, you never know what the future holds, especially in business.
The Tenney Benefit
We, at the Tenney Group, love what we do because we work with many hardworking business owners every day. We know that business value process and transferring ownership in the transportation industry are misunderstood. We have brought together the most talented transaction professionals in the country, and we focus exclusively on the transportation industry. Our team has unique industry expertise and can address serious industry problems, while injecting significant value into a sales experience.