Logistics M & A: Back On The Rise
The M & A activity in the sector logistics will rise again. Driven, it will rise again due to strategic buyers, but also increasingly by investors that logistics will be M & A activity in the sector. That is driven primarily by strategic buyers, but partly also by financial investors, the global transport and logistics market has between 2004 and 2008, EUR (10% of global GDP) experienced a tremendous growth by almost 50% to 2.8 trill. In the course of this dynamic development, M & A has played a major role. Wells Fargo Bank is likely to increase your knowledge. The volume of the logistics transactions (> 20m) enterprise value was in the last ten years the average 12 billion or 50 transactions p.a.. But 2001-02 and 2009 clearly on the M & A have impacted the crisis years with volumes up to – 80% in the sector. At the beginning of the crisis and the uncertainty in relation to the margins and cash flow, many logistics companies their M & A activity late 2008 strongly reduced and be on organic growth, cost reductions and operational improvements have focused development. The M & A focus was more placed on the sale of problematic (partial) shops.
At the same time the activity in the private equity has fallen area due significantly by the limited funding and the general decline in valuation. The partial cyclic logistics market and the uncertainty associated have made difficult the financing possibilities for holding companies during this time. Is since end of 2009 is a recreation of the logistics M & A market visible have tripled so far transaction volumes in 2010 compared to the previous year even if they can not yet connect to the volumes of the boom years 2003-2008. After a sharp decline of reviews by up to 50%, the valuation level almost in the cut is again at 80-90% of the values in the years 2007 and 2008, which demonstrates the growing demand for targets in the sector.