Fox Bus Lines Acquired By National Express

Industry: Motor Coach
Business Location: Boston, MA
Tenney Group Role: Advisor to Seller

What were the sellers’ motivations in deciding to pursue an exit?
The owners, 3 brothers and a former spouse, agreed that it would be best for the company and their people to allow another buyer to confront the growing challenges in the space and take the business to the next level.

What challenges were unique to the seller as they entered the marketplace?
We believed there would be pause from buyers as part of the seller’s business was tied to events that were cyclical in nature. Additionally, there were possible valuation gaps between the seller and the buyer.

How did Tenney Group maneuver around the challenges?
We targeted a buyer who had explicitly stated that they had a prior desire to be in the region and in the market the seller was currently participating. Further, we highlighted and leveraged the contracts that the business had, essentially locking in a heavy portion of the business’ income. In this engagement as well, we secured multiple offers from a variety of different buyers – private equity and strategic.

Key Takeaways for Other Business Owners:
The deal was structured in a way that allowed the sellers to cash out now while also allowing them to participate in a large earnout post transaction (if and when certain components were met). The 4 business partners were in different seasons of life with different goals and appetites for risks. The sale process allowed them to receive and review multiple offers from multiple buyer types (strategic, private equity, etc.). In doing so, they were able to trust the information in front of them and ultimately align their goals with one another in order to solidify their financial security and to protect millions in generational wealth.

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