The School Bus Industry
The school bus industry is one of the most interesting branches of the transportation industry. The school bus is considered the safest vehicle on the road and, according to numerous studies, it is the safest way to get children to school. School buses are the most regulated vehicles on U.S. roads.
The most interesting fact about the school bus industry is that it quietly did its work since the very beginning, providing safety for children going to school and peace of mind for their parents. The school bus industry is about safety and dedication, and if you own a school bus business, you already know the challenges it brings.
The School Bus Industry: A Short History
In the U.S. the school bus industry has an interesting and long story, as it started long before cars were going around.
It was in 1869 when the Commonwealth of Massachusetts passed the first legislation to allow the use of public funds for children school transportation, and by 1919, forty-eight states had passed similar laws. The roots of the school bus industry can be traced back to 1886, in Indiana. The first vehicles known as “school hacks”, “school trucks”, “school cars” or “kid hacks” were simple horse-drawn carriages.
The father of the school bus is Wayne Works. When the automotive industry began to flourish, in 1914, Wayne Works made the first step to develop the school bus as we know it today, by motorizing the carriages. As technology evolved, in 1927, the first school bus that primarily used steel panels was built, increasing students’ safety and protection.
The school bus industry evolved, as the school bus is a safe and reliable solution for busy parents who cannot drive their children to and from school everyday. Keeping children safe is the first and most important priority of a school bus transportation company. As a business owner in this industry, you must offer parents peace of mind and assure their children will go to school and return home safe and sound.
A Remarkable Industry
Student transportation is big business. In the past, the school bus industry was dominated by family-owned businesses. Today, this industry plays an important role in both the American economy and educational system and has a complex structure, being America’s most significant transit system. The school bus industry has a big influence on many people, as school bus carriers operate the largest mass transportation fleet in the U.S.
As it did during past years, this industry will continue to lead and see important changes as business owners in the school bus transportation industry face numerous challenges including driver shortages and vehicle downtime. At the same time, the school bus industry is directly influenced by the health of the economy.
The transportation niche is a unique one in the business world. School bus businesses are still big players in a continuously growing industry, and the school bus transportation industry is projected to grow in the coming years as budgets improve and the number of elementary, middle and high school students rise nationwide.
The hunt for advice on how to buy, sell or value a school bus business ends here. The experts at the Tenney Group are passionate about helping business owners in the industry buy, value and sell their transportation businesses, while making the entire process as rewarding as possible at the right time. As you become more educated about the entire process, you will create an ideal environment for the transaction.
If you have a school bus company for sale, you may already know more than you think about making the right choice. The process of buying or a selling a transportation business is a long and confusing one, and this is the main reason why you need a specialized advisor in the transportation industry as your trusted partner.
Selling a School Bus Business
Exiting the school bus industry is not a one-size-fits-all proposition because you have more options and exit channels than you may think. Once you are at the point of preparing your school bus company for sale, you need to consider all your exit goals and channels. By channels, we mean outright sales, partner buyout, transferring the business to a family member, Employee Stock Ownership Plan (ESOP) and recapitalization.
Exiting the school bus industry is a serious step for your business. A favorable exiting requires an opportunistic approach, adaptable to the available market conditions.
Need help with selling or buying a school bus transportation business? Contact us today!
The Tenney Benefit
The Tenney Group is a family-owned business focused exclusively on the transportation industry. Over the last 40+ years, the Tenney Group has become a trusted advisor to business owners in the transportation industry, helping them value, sell or buy their companies in the transportation industry. With a vast network of industry experts and proprietary tools, our processes are meant to offer you a strategic advantage that you cannot get anywhere else. Our unique expertise helps business owners in the transportation industry, including school bus transportation business owners, build and protect business value, grow through acquisition or optimize the sale of their company, making the entire process a pleasant experience at the right time for them.
You already know this, but let us remind you – the transportation industry is not like other industries. If it is transportation, it is the Tenney Group!