NATIONAL BUS COMPANY: A SERIES OF BUYOUTS
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• The record for spawning management buyouts must surely be held by NBC, which is in the process of being privatised through the piecemeal sale of each of its various businesses. In particular, it was determined at an early stage by the Government that each of the operating companies would, if at all possible, be sold separately and that management would be given favourable treatment, including a very small price advantage.
To date over 20 companies have been bought out by their managements, including Devon General, Maidstone & District, Southern Vectis and Eastern Counties with many more either negotiating or preparing their bids. Details of the financing structures are relatively scanty, but it is clear that many of the deals have been financed substantially, if not entirely, by debt. This has been possible because of the high asset content of these companies and their relatively healthy cashflows.
It remains to be seen how the bought-out companies fare in the new world of deregulated public transport, but first indications are that many are responding vigorously to the challenge and that some are already acquisitive.
There have been numerous other buyouts involving the commercial vehicle industry. In 1 986 alone, these included manufacturers (Leyland Bus, Combo Stonefield), parts suppliers (Unipart, Maccess), van hire (Brighton Van Hire), mechanical handling (Leader Lift Trucks, Sterling Mechanical Handling) and both general and specialised transportation (Bees Transport, Carpet Express, Langdon Industries).