Succession planning, growth & M&A — lessons from the UK coach industry

The UK coach industry has become one of the most fascinating case studies in the current mergers and acquisitions (M&A) market. Over the past two years, the sector has seen an increasing number of strategic investments involving both family-owned operators and larger transport groups. 

Consolidation has accelerated across the market, driven by a combination of succession challenges, rising costs, investment requirements and the search for greater scale — yet the story is about much more than M&A. 

In many respects, what’s happening in the coach sector reflects a much broader trend across UK owner-managed businesses.

Brett Cooper, Partner in our corporate team, recently sat down with Billy Jones, Managing Director of Selwyns Travel Group, to discuss consolidation, acquisition-led growth, succession planning, integration and culture — and what business owners can take from it.

Why consolidation is accelerating in the coach industry

The coach sector has long been made up of owner-managed SMEs. That’s changing. Acquisitions and investments are becoming more common as operators seek scale and resilience to offset fuel costs, rising employment costs and the need to invest in infrastructure, technology and customer experience.

As businesses grow, they can centralise HR, finance, payroll and commercial operations, achieving efficiencies while keeping local customer relationships and operational expertise.

The growing importance of succession planning

Historically, many owner-managed businesses only began thinking seriously about an exit or succession strategy when retirement approached or an unexpected opportunity arose.

Increasingly, however, business owners are planning earlier and thinking more strategically about their long-term future.

For some, that future may involve a trade sale. For others, it could mean a management buyout, employee ownership model, private equity investment, acquisition-led growth strategy or family succession plan. What's changing isn’t necessarily the options available to business owners but when those conversations begin.

Many owners are now considering their long-term objectives years before a transaction takes place, giving themselves greater flexibility and more time to prepare.

As a result, demand for corporate advice is increasingly being driven by preparation rather than transactions themselves. Businesses are reviewing leadership structures, considering future growth opportunities, strengthening governance arrangements and ensuring that they’re well positioned should an opportunity arise.

Having the right people in the right roles, clearly defined responsibilities and robust financial performance remain critical considerations for any future buyer or investor. Equally, those are often the foundations of a stronger business regardless of whether a transaction ever takes place.

Use acquisitions to diversify and de-risk, not just to scale

Successful acquisitions aren't simply about getting bigger. For many businesses, acquisitions can reduce reliance on a single customer, create access to new markets and diversify revenue streams. They can also provide greater operational flexibility and resilience.

Earlier this year, Selwyns Travel Group acquired Eavesway Travel, bringing together two well-respected North West operators. What made that transaction particularly interesting was that it highlighted how succession planning and strategic growth can intersect. Industry commentary around the deal recognised both the increasing momentum behind consolidation and the fact that some long-established family operators are looking for the right long-term home for their businesses where there’s no obvious succession route within the family.

This acquisition also allowed the group to expand into a different area of the market while maintaining complementary services and customer relationships. Rather than duplicating existing operations, the transaction broadened the group's overall offering.

That's a lesson that extends well beyond the transport sector. Across many industries, businesses are increasingly evaluating whether future growth is best achieved organically, through acquisitions or through a combination of both.

Why culture & people matter

Deals don’t succeed on numbers alone. Bringing two businesses together depends on people, culture and clear communication. Maintaining trust, retaining key employees and setting out the future strategy are all critical to integration.

It’s also important to recognise why the acquired business was successful. Local brands, customer relationships and established reputations often carry real value and play a central role in future growth plans. For many family-owned and owner-managed businesses, preserving culture and protecting employees can be as important as the headline price.

How to prepare your business for sale, acquisition or succession

Preparation compounds options. Businesses are strongest when they get ready for future opportunities before actively marketing for sale or pursuing acquisitions.

Focus on:

• People and leadership — ensure that the right team is in place with clear roles and responsibilities.
• Financial discipline — robust performance, reliable data and clean reporting.
• Strategy — a defined, credible plan for growth and investment.

What owner-managed businesses should do next

The coach sector's recent experience suggests consolidation is likely to remain a feature of the UK market for some time. This may offer a useful blueprint for ambitious businesses pursuing acquisition-led growth. 

The organisations achieving the greatest success are often those that view M&A as a deliberate ongoing business strategy rather than a single opportunity — combining disciplined target selection, effective integration processes, and long-term planning to create growth.

Talk to us

The most successful acquirers often start preparing long before a potential target has been identified. Our award-winning corporate team supports businesses at every stage of the acquisition journey, from developing an acquisition strategy and identifying opportunities through to due diligence, completing the transaction and bringing businesses together.

Talk to our team by calling 0333 004 4488, emailing hello@brabners.com or completing our contact form.