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Transportation & Logistics Industry Update KEEP ON TRUCKIN’
by Greg Lafin, Managing Director, [email protected]
TRUCKING & TRANSPORTATION INDUSTRY UPDATE – HY 2016 OUTLOOK
BKD Corporate Finance, LLC (BKDCF) has seen an increase in the activity of mergers and acquisitions (M&A) consolidation occurring in the trucking and transportation segment. This trend is expected to continue throughout the next five years, with market experts forecasting annual growth of 3 percent. BKDCF’s industry observations are detailed below.
Slow U.S. economic growth combined with an increase in consumer spending will continue to boost demand for services.
Although it’s been a bumpy ride, demand continues to climb for companies in this sector. The industry has recovered most of the ground lost during the recession, with industry profit margins expected to continue improving over the next several years.
Key external drivers1 include:
• Industrial Production Index • Freight Transportation Services Index
• Consumer spending • Price of crude oil
• E-commerce sales
Larger operators will continue to expand their operations both geographically as well as through value-added services.1
Keys to M&A consolidation:
• Access to quality personnel • Customer relationships
• Optimum capacity utilization • Technology
• Governmental policies and regulation • Very competitive landscape
• Increased supply chain complexity
Related Industry Subsectors
Long-Distance Trucking
Local Specialized Trucking
Tank & Refrigerated Trucking
Local Specialized Freight Trucking
Freight Forwarding & Brokerages
Warehouse & Fulfillment Services
1IBISWorld Local Freight Trucking in the US, IBISWorld Freight Forwarding Brokerages in the US 4/2016.
MEET THE AUTHOR
Greg Lafin // Managing Director // [email protected] // 630.282.9569
Greg is the head of BKD Corporate Finance, LLC’s Chicago office and has provided merger and acquisition advisory services to small and midsize businesses for more than 20 years. He has extensive experience in providing investment banking services including seller services, acquisition searches, due diligence, financial structuring and modeling, negotiation support and profit improvement advisory support.
bkdcorporatefinance.com
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TRANSPORTATION & LOGISTICS INDUSTRY UPDATE
PUBLIC COMPARABLES – TRUCKING COMPANIES
PUBLIC COMPARABLES – LOGISTICS COMPANIES
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TRANSPORTATION & LOGISTICS INDUSTRY UPDATE
TRUCKING & LOGISTICS PUBLIC COMPANIES COMPOSITE: EV/EBITDA
PRIVATE EQUITY MULTIPLES
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TRANSPORTATION & LOGISTICS INDUSTRY UPDATE
SELECT INDUSTRY ACQUISITIONS
BKD CORPORATE FINANCE SERVICES• Strategic options analysis
• Sell-side representation
• Buy-side representation
• Capital raises
• Strategic affiliation process representation
• Transaction process management
• LOI or financing term sheet negotiation
• Due diligence process & closing management