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#1 21-06-14 19:26:38

Triplea35
Verified Member
Registered: 28-09-12
Posts: 508

Fancy having a share of the ownership of the AA/BSM?

Well here's your chance.

The AA is being listed on the London Stock Exchange before the end of the month.

70% of its income is from the roadside assistance arm but it also owns the two largest driving schools in the UK.

The current owners, a private equity company Acromas, recently sold off the Saga group with a public share offer but in this case have gone for an institutional offer at £2.50 per share which has been oversubscribed and values the company at £1.4bn.

So no quick profit, like with Royal Mail etc, for the private investor.

I self manage a small proportion of my investment portfolio and since considering being an ADI primarily focussed on everything 'driving' related such as oil/insurance/car dealerships etc and have considerably outperformed my managed funds/FTSE 100.

Not too sure about this one though yet so will monitor and consider getting in on a dip.

Anyone else fancy being a part owner in two rather large driving schools?

We could form an owners club and start posting, justifying the high Franchise fees!!  big_smile

Last edited by Triplea35 (22-06-14 05:52:11)

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21-06-14 19:26:38

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Re: Fancy having a share of the ownership of the AA/BSM?



#2 21-06-14 20:09:13

Roadmaster
Verified Member
Registered: 04-03-04
Posts: 5,670

Re: Fancy having a share of the ownership of the AA/BSM?

BSM is no longer a large school, and when a company takes over a business the first thing it does is look to reduce it's costs. Is running two businesses which are in direct competition with each other a sensible investment?    Driving schools have never made money, and I think BSM will disappear in the next few years.

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#3 21-06-14 21:19:22

MGM
Verified Member
From: Surrey
Registered: 24-10-11
Posts: 861

Re: Fancy having a share of the ownership of the AA/BSM?

Roadmaster wrote:

BSM is no longer a large school, and when a company takes over a business the first thing it does is look to reduce it's costs. Is running two businesses which are in direct competition with each other a sensible investment?    Driving schools have never made money, and I think BSM will disappear in the next few years.

Never?

When BSM was bought by the RAC (about 1990) it was making a healthy profit, and AFAIK continued to do so at least until the Aviva takeover in 2005. Obviously things went downhill after that.

The finances of the AA's driving schools are not in the public domain, but it seems unlikely that the AA's current owners would have kept them if they weren't profitable, particularly at a time when they've been preparing for a flotation.

But I suspect you're right about the BSM brand disappearing.

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