InSight

Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Transport/Logistics’ Category

Q3 Transport, Logistics and Supply Chain M&A Update

By Kim Levin | Oct 31, 2014

TLIPG-Rail TunnelM&A activity in the Supply Chain and Logistics sector for North American based target companies in Q2 2014 included 44 closed deals according to data provided by S&P Capital IQ. The average deal value was $74 million with an average enterprise value to revenue multiple of .79.

Overall valuations are modest for several reasons. First, transportation deals are cyclical and have already passed the high peak after the low from the recession. Another contributing factor is the horizontal consolidation of smaller trucking companies as opposed to transactions involving more costly modes like airlines and rail.

Read the Entire Transport, Logistics and Supply Chain 3rd Quarter Newsletter Here


Q2 Transport, Logistics & Supply Chain M&A Update

By Catherine Patience | Jul 03, 2014

TLIPG-Warehouse of ProductsM&A activity in the Supply Chain and Logistics sector for North American based target companies in Q1 2014 included 72 closed deals according to data provided by S&P Capital IQ. The average deal value was $64 million with an average enterprise value to revenue multiple of .67. The deal activity has primarily been driven by large acquirers gobbling up smaller local outfits with the hopes of enhancing market share at relatively modest multiples. According to a report from global consulting firm PriceWaterhouseCoopers, this sentiment has set up smaller trucking and logistics companies for a lively M&A market over the next 12 months.

Read the Entire Transport, Logistics & Supply Chain 2nd Quarter Newsletter Here


Transport, Logistics and Supply Chain Q1 M&A Update

By Catherine Patience | Apr 25, 2014

TruckM&A activity in the North American Transportation and Logistics sector for Q4 2013 through February 24, 2014 included 96 deals announced or closed according to data provided by S&P Capital IQ. According to a report from international consulting firm PriceWaterhouseCoopers, deal activity was strong to close 2013 with infrastructure targets (asset heavy airport and port assets) accounting for the majority of mega transactions. According to the PWC report, with US airline consolidation mostly complete, areas ripe for consolidation include trucking and logistics. Another sub-sector projecting an increase in activity is shipping, though anti-competition laws may lead to more partnerships and alliances than deals.

Read the Entire Transport, Logistics & Supply Chain 1st Quarter Newsletter Here


Transport, Logistics and Supply Chain Q4 M&A Update

By Kim Levin | Feb 14, 2014

TLIPG-Train into TunnelM&A activity in the North American transportation and logistics sector in the third quarter of 2013 was active with 62 deals announced or closed in the period according to data provided by S&P Capital IQ. According to a report from international consulting firm PricewaterhouseCoopers (PwC), deal making activity in North America and Europe was somewhat tempered compared to other parts of the world due to strategic companies largely remaining idle, or on the sidelines. Moreover, the respective economic challenges in each region are impacting activity, but the near-term outlook for North America is bright due to a recent upswing in manufacturing activity.

Read the Entire Transport, Logistics and Supply Chain 4th Quarter Newsletter Here


Transport, Logistics and Supply Chain M&A Update

By Kim Levin | Dec 06, 2013

TruckAccording to data collected by Ernst & Young, there has been a consistent trend throughout global M&A over the past three years associated with declining deal conversion rates and a longer average time to completion. Although these trends do not seem favorable, they may be attributed to an increase in pending bids caused by a more optimistic lending environment. Since September 2010, there have been 82 transactions under $1 billion in the transportation & logistics (“T&L”) industry within North America, totaling almost $6.5 billion in aggregate value.

Read the Entire 3rd Quarter Transport, Logisitics and Supply Chain Newsletter


CFA Advises Rockey Companies

By Roy Graham | Jun 14, 2008

rockey

Case Study

Situation: John Rockey started his company in 1983 with a single truck. Twenty-four years later, he had grown it into a highly successful transcontinental provider of logistics services to the United States military. Rockey realized however, that he was on the verge of losing control as the company continued to grow. Believing that he had advanced the company as far as he could, he decided he would have to sell. A financial services provider saw that he needed experienced guidance and introduced him to CFA.

Solution: Upon understanding Rockey’s true desires, CFA outlined a recapitalization process which allowed him to extract wealth from his company, while still retaining an attractive ownership position and active involvement in his company. CFA identified a strong investment group willing to invest and commit to active management in the company. With the needed expertise to institute sophisticated systems and controls while bringing new resources and strategic insight, Rockey’s new partners form the foundation for future growth of even greater opportunities.