There seems to be a growing trend of larger independent coach operators being purchased by big bus groups. My immediate reaction to news of these deals is the same as I imagine it is for many of my fellow coach proprietors: Why them and not me?!
My second reaction is to consider what is drawing these often-multinational bus firms towards the coach industry. The coach operators concerned tend to be longstanding, incredibly well-respected family businesses that have grown organically over a long period of time.
They have not been start-ups that have found a gap in the market, exploited it, and then sold quickly for a large profit, not that there is anything wrong with that business model.
I know from personal experience that buying or selling a longstanding business that has been in a family for generations is not an easy decision to make. There is the legacy aspect to consider; do you want your children following you into an industry that often requires long hours and heavy investment?
I have said before that I will not be pushing my children into my job. Selling a business can lead to huge investment from the new owner, and a chance to grow still further. You can stay on and watch that expansion, and then retire at the normal age if you so desire.
But back to my original question. What is prompting large bus companies to purchase coach operators? Coach businesses are good at diversification, and many have entered the contracted local bus service market. Immediately, you can see why a big bus group has an attraction to those organisations, with their guaranteed revenue, especially if they have a decent-sized depot to work from.
That still leaves the coaching side. Bus service work and coach hire are chalk and cheese. They require very different skillsets. Yet there still seems to be a growing confidence that the large groups like First Bus and Go-Ahead can make it work.
The reasons? Home-to-school services are increasingly better paid, rail replacement is plentiful, and technology companies contracting routes means that there is more ‘service-style’ work being done by coach operators anyway.
Some of the traditional duties of coach businesses, such as group outings, did not really return after the pandemic. Whisper it quietly, but we are all getting better rates than before COVID-19.
In the end, what will make the coach industry more attractive is that investors see the potential to get a good return on their money. For the first time, possibly ever, is the coach industry being seen as an attractive proposition for investment? If it is, then that can only be a good thing.
If anyone is interested in buying another coach operator, please ask the Editor for my contact details. But give it a couple of years. I have a few things that I want to achieve first.
