LOOK BEFORE YOU LEAP
Article by Conor Nolan Boira Consulting
www.boira-consulting.co.uk
The private hire industry has been in a state of flux for some time. Think back to the sleepy days before Uber entered the market. For those who survived this Uber onslaught, what was the reward? Covid decimating the industry norms and causing many drivers to exit the industry in droves. Let’s not mention the elephant in the room… employment status (that hasn’t gone away).
For those of you still in business, you have overcome many challenges. No doubt a lot of you are also thriving in this post covid world with less drivers than you would like. But here’s the thing, operators through-out the United Kingdom are purchasing each other at an unprecedented rate.
Perhaps unsurprising, given the number of operators thriving with more
undertake them, acquisition seems like the quickest sure-fire way to grow, right?
Imagine, you are at the edge of a pier and are going to jump in, in search of pearls. You think this is a good area to find pearls and are focusing on how you are going to spend your money, after recuperating the costs of equipment that is. Focused on the growth of your finances you don’t stop to think, is this the right pier? Have I got the right equipment? Why am I doing this in the first place?
If you did, you would probably take a moment to reflect before you jump in. Some people will tell us that this “is a once in a lifetime opportunity”, it might be. But is it the right opportunity? Take a closer look at the water, what do you see?
There could be sharks in the water, unseen dangers hidden just outside of our line of sight. If you jump right in, what will happen? We can never know with 100% certainty, but if we take a moment to notice a shark fin in the water, that could save us from preventable harm.
To those of you who jump in and deal with the consequences later, I admire your bravery. But rushed business decisions, as with life, can be life or death (for your business).
22 bookings than drivers to
A poorly structured or considered acquisition could be more hassle than it is worth. You could end up with a business that in no way integrates with your own and will require significant time and effort to do so. This is not such a problem, if you have already planned for this. If you didn’t, well, imagine the time, money and stress it could cause to integrate the acquired business into your own.
Furthermore, if you do not take the time to properly consider the business you are purchasing, you may very well get more than you bargained for. After all, we have all purchased a second-hand car that we were assured was “good as new”, only to find that its engine is about to fall through the floor, none of the electronics work and the car mysteriously smells like damp feet.
This is hard to stomach with a relatively low value second hand car purchase. How would you feel if that was a business you acquired? Tax issues, employment issues, creditors coming out their ears… is it worth the price you paid for it?
Finally, how many readers have purchased a
competitor only to find that most of the drivers you thought you were purchasing access to, left within weeks? Could this have been avoided with proper planning and strategy?
Look before you leap, and you could plan for it. Reach out to us:
conor@boira-consulting.co.uk
MARCH 2024 PHTM
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