• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Sozo Fire

A Hot Spot of Knowledge

  • Home
  • Topics
    • Business
    • Construction
    • Family
    • Health
    • Swimming Pools
    • Technology
  • Ask a Question
  • Contact Us

Diversifying within the Transportation Industry through Acquisitions

October 1, 2010 By Sozo Staff Leave a Comment

As the current economic climate produces more uncertainty than confidence, transportation business owners across Houston and the gulf region are exploring a variety of business development activities to protect their primary investment in the transportation industry. Diversifying within the transportation industry through acquisitions is a strategy that is becoming more and more common.

What is diversification? Diversification is the process of investing a portfolio across different asset classes in varying proportions depending on an investor’s time horizon, risk tolerance, and goals. For transportation business owners, diversifying often means spreading your risks exposure and financial upside across different transportation industry segments but where your professional experience and industry knowledge are still applicable

Example: A trucking business acquires a bus company in order to have a business that compliments his existing company that is not subject to the same challenges and risks of the trucking industry.

Why diversify within the transportation industry? Transportation business often live and die by the success of one financial asset—their transportation business. Unfortunately, when disaster strikes, 30 years of experience and hard work can be wiped out–leaving no recourse to recover financially. Diversifying, if nothing else, provides the means to help transportation business owners protect their primary investment and to live to fight another day.

3 more reasons for diversifying within the transportation.

1. Stick with what you know.

Though a freight hauling business and a passenger transportation business may seem to be very different, many of the management principles and work flows are very similar. Unlike investing in a completely different industry, transportation business owners that diversify within the transportation industry can accomplish everything they want through diversification with the shortest possible learning curve.

2. Reduce the effects of market volatility.

Various segments of the transportation industry are affected differently by market volatility. When a business owner’s risks are spread across different segment s, the overall risks in his investment portfolio are reduced. This approach is much more conducive to long term success.

3. Fluidity and greater control over an exit strategy.

Any transportation business owner who has been in the business over the last 20 years understands how an economic crisis can influence an exit strategy. After 9/11, The Tenney Group witnessed countless business owners on the verge of retirement forced to recommit themselves and their retirement funds to their business for another ten years. They had no other options. Diversifying allows business owners to minimize their overall risk exposure and to maximize control of their exit strategies.

For more information about diversifying within the transportation industry, contact The Tenney Group.

Filed Under: Transportation

Additional Articles

Selling a Business: How to Package Your Business for Sale
Is Your Business Ready to Grow?

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

9 + seventeen =



Primary Sidebar

Lyon Financial

Popular Posts

  • Berg Furniture Children’s Furniture Lines: Options and Space Savings, Galore
  • Dream Furniture for Your Child, Part 2
  • Tropical Decking and Ipe Alternatives
  • Dream Furniture for Your Child, Part 1
  • Benefits of Going on a Mission Trip
  • Why Walnut Gets Special Treatment, Part 2
  • Business Flash Drives
  • Septic System Pumping in the Charlotte, NC Area
  • Custom Wire Oven Racks by Three M Tool for Bakeries
X10 Home Automation

Recent Posts

  • Setting Up Your X10 System: Beginner’s Guide to Home Automation
  • Options for Home Automation: What Makes X10 Different?
  • Benefits of Aquatic Exercises, Part 2
  • Benefits of Aquatic Exercises, Part 1
  • Black Algae in Your Pool? Here’s What to Do, Part 2
  • Black Algae in Your Pool? Here’s What to Do, Part 1
  • How the X10 HUB Advances Already Incredible Technology
  • What Makes X10 Home Security Systems Unique
  • Should You Think About a Pool & Hot Tub Combination?
  • Drowning Prevention in Swimming Pools
Lyon Financial

Recent Comments

  • Alice Carroll on Pool Choices: Pool Fences
  • Zachary Tomlinson on Swimming Pool Cover Advantages
  • Hannah on X10 GSM Home Security Systems
  • Michael Cobb on X10 GSM Home Security Systems

Copyright © 2023 Sozo Firm Inc · Privacy Policy · Disclaimer · Sitemap