News & Insights

As a school bus contractor, you’ve built a business that helps the community while supporting your family. But what is your long term future plan? Business owners are not surprised to hear that the income and value generated by a privately held business represents about 80% of the business owner’s wealth. But many business owners focus on generating business income while ignoring business value. Your business is an income generating asset, just like the vehicles in your fleet. Contractors are careful to maintain and preserve the value of each vehicle, hoping to avoid breakdowns, and in the end, sell the vehicle for good value. Why not treat your business the same way? You can avoid costly business issues, build business value, and assure a comfortable retirement by minding your “wealth gap”, “profit gap”, and “value gap”.  

The Wealth Gap is the difference between your current assets and what you need to achieve your retirement lifestyle goals. If you plan to retire, sell your company, or transition ownership to family or key employees, your personal wealth must be sufficient to support your retirement plans. Knowing your Wealth Gap helps you set a clear financial target for your exit plan. 

The Profit Gap measures the difference between your company’s current performance and the best-in-class profitability achievable in your industry. Many school bus contractors operate profitably but still leave money on the table because their business can’t be easily sold. By making the changes that make your business marketable, you can also increase profit while decreasing risk. Exit Planning now, gives both immediate and long-term benefits.  

The Value Gap is the difference between your company’s current market value and the value required to meet your Wealth Goal, that is, the assets you will need at retirement to achieve your retirement lifestyle goals. Understanding your Value Gap helps you focus on the key drivers that make your business more attractive to buyers, lenders, or successors, and ensures that when you’re ready to exit, retire, or just slow down, you’ll receive the business value you need and deserve. 

How RC Kelly Law Can Help – Rich Kelly, J.D., CEPA is a Certified Exit Planning Advisor with an experienced team who is familiar with the business of school bus contracting. Our team combines business law, succession planning, and exit strategy expertise to guide Pennsylvania school bus contractors through every stage of ownership — from growth to transition. We work with you to: Assess your current business value and financial readiness. Identify and close your wealth, profit, and value gaps. Develop a personalized exit plan, in coordination with your existing financial, tax, and insurance advisors, that protects your business, employees, family, and future. Your Business Is Your Legacy. Don’t leave your future to chance. Whether you’re planning to grow, sell, or pass your business on to the next generation, RC Kelly Law can help you build value, capture profit, and secure wealth — on your terms. 

For more information about your business income, value, gaps, and exit plan, contact us at 215-896-3846 or help@rckelly.com.