Despite the challenging freight recession, some deals in the logistics sector were successfully completed this year. The Logisyn Advisors’ monthly report revealed 43 transactions in November alone. At the Benesch Private Equity conference, panelists acknowledged the difficulty of getting deals done but remained optimistic about the possibility of bridging the gap between seller expectations and buyer offers.
Buyers are reluctant to pay the peak 2021 multiples, while sellers remember better times from two years ago, resulting in fewer deals. However, creative solutions such as offering equity instead of cash have been utilized to close transactions. Strategic buyers like Yusen Logistics continue to pursue acquisitions to enhance their capabilities.
While sales of 3PLs have declined, warehouse-related deals have held up better. Cambridge Capital is actively seeking add-ons for companies in its portfolio like BOA and Everest Transportation Systems. Mexico and California are seen as potential areas for acquisitions, with Mexico being a focus for growth due to the reshoring trend and shifting commercial relationships.
Despite challenges, opportunities exist for those willing to navigate complex environments like California. Overall, while the market faces challenges, creativity and strategic thinking are essential in getting deals done in the current landscape.
