Transportation & Logistics

The transportation and logistics industry is undergoing major changes: digital revolution, new market participants, changing customer expectations, and new evolving business models.

 

As the transportation industry is becoming more dependent on technology, great efforts are being undertaken towards sustainability. Global passenger demand is on the rise both in mature and emerging markets, where the population is becoming increasingly affluent and mobile. In terms of cargo transportation, trade relations between China, North America, and the European Free Trade Association (EFTA) are forecast to drive up traffic demand over the coming years. While cargo aircraft are often used to transport mail, animals, and dangerous items, bulk products are typically carried by railways, trucks, and ships. In the logistics industry, intermodal freight traffic is the most common choice to move consumer goods, as freight that is shipped in containers can easily be moved interchangeably by trucks, railroads, and containerships.

 

Transportation and logistics M&A increased significantly during 2021 as companies focused on gaining more control over their supply chain and expanding for future growth. More strategic investors engaged in mega-deals to drive scale and expand product portfolio and geographic footprint.

 

* According to Pitchbook’s 2021 Global M&A Report

FCL Industry Coverage

 

  • Aviation
  • Marine
  • Rail
  • Trucking
  • Distribution
  • Equipment Rental

M&A Activity

Since Q4 of 2021, M&A activity in the sector has been slowing down, with 2,385 deals closed in Q3 2022, a 27% decrease from 3,286 in Q3 of 2021. This was driven mostly by a decrease in Private Equity and Venture Capital deals. Median post valuation in Q4 2021 peaked at his highest value, in 2022 we start to see a decreasing trend with median post valuation at Q3 2022 standing at $40.03 million, a decrease of 27% compared to Q4 2021.