Catherine Synan No Comments

Keep many “balls in the air”

As we develop the trucking and logistics marketplace the total market of buyers and sellers begins to shrink. In our case we attempt to contact close to 300 trucking/logistics company a week to determine “who is buying” and “who is selling” or “is there a need for capital to buy…”. The market remains active as it appears that those who held off selling in the recent down years are now ready to make a move. The possible expiration of the 15% Capital Gains rate is an incentive as well.

While there are many sellers, the typical type of deal in this industry has included senior bank debt, a small amount of equity and a sellers Note. This doesn’t sit well with many sellers and creates a significant opportunity for Clarke, whose experience was first on the capital side prior to its focus on Transportation.

We are also seeing many local SW companies still having problems with bank loans and have sources for non-bank private debt.

The market is coming back strong and the next 18 months are likely to be the last for low valuations on acqusitions as many companies are accelerating in growth and EBITDA multiples.

Catherine Synan No Comments

Boutique Investment Bank vs. Business Broker

In the transportation and logistics market we are constantly coming up against the tranditional local Business Broker as competition. It is important to distinguish the difference between a Boutique Investment Bank and a Business Broker. Lets start with the most obvious differences:

Finra Licensing allows for securtiies transactions (IE: a stock sale) and insures the seller of a clean background check for the I-Banker.

Private Equity experience is typically much stronger.

Research on the Transportation and Logistics space is stressed nationally.

After the sale services: a. Asset Management, Trust planning, succession planning utilizing a world wide top 10 Investment Bank, Royal Bank of Canada “RBC”

Rarely do we charge upfront fees due to our confidence in completing the transaction.