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Private Equity Mergers and Acquisitions: Logistics Sector

Recent times have seen considerable alterations in private equity M&A as companies adjust to changing market dynamics. This blog post will delve into the factors driving this shift in focus, along with an exploration of synergistic acquisitions and their benefits.

As we discuss business models of acquirers in M&A transactions, you’ll gain insights into how private equity owners’ short-term plans differ from industry buyers’ long-term integration aims. We’ll also examine the impact on target companies during acquisition processes.

The aerospace, defense, and government sectors have shown robust performance recently – we’ll analyze key drivers behind this trend and observe patterns among private equity investments. Furthermore, we’ll outline entry strategies for PE firms looking to invest in the defense sector while addressing risk mitigation techniques and ethical considerations.

Lastly, regulatory oversight & antitrust concerns play a crucial role in shaping private equity mergers and acquisitions; hence our discussion will encompass their impact on M&A transactions. In addition to that, we will explore the role of PE firms in facilitating bolt-on acquisitions alongside comprehensive due diligence practices essential for identifying value creation opportunities within target companies.

Table of Contents:

  • The Shift in Private Equity M&A Focus
  • Factors Driving the Shift in Private Equity M&A Focus
  • Benefits of Synergistic Acquisitions
  • Business Models of Acquirers in M&A Transactions
  • Comparing Private Equity Owners’ Short-term Plans with Industry Buyers’ Long-term Integration Aims
  • Impact on Target Companies during Acquisition Processes
  • Aerospace, Defense, & Government Sector Performance
  • Entry Strategies for Private Equity Firms in Defense Sector
  • Risk Mitigation Techniques Employed by PE Firms When Entering This Sector
  • Importance of Ethical Considerations When Investing
  • Regulatory Oversight & Antitrust Concerns
  • Impact of Regulatory Changes on M&A Transactions
  • Antitrust Concerns in the Context of Private Equity Acquisitions
  • Role of Private Equity Firms in Facilitating Bolt-on Acquisitions
  • Benefits and Challenges Associated with Bolt-on Acquisitions
  • Examples of Successful Bolt-on Acquisition Strategies
  • Comprehensive Due Diligence Practices & Value Creation Opportunities
  • Key Components of an Effective Due Diligence Process
  • The Importance of Legal Histories Review During Target Company Evaluation
  • FAQs in Relation to Private Equity Mergers and Acquisitions
  • Do Private Equity Firms Participate in Mergers and Acquisitions?
  • What Is the Role of Private Equity in Merger and Acquisition Transactions?
  • How Is M&A Different from Private Equity?
  • What Percentage of M&A Is Private Equity?
  • Conclusion

The Shift in Private Equity M&A Focus

Private equity firms have shifted their focus from value-creation acquisitions to synergistic ones due to increased competition and the potential for high salaries, bonuses, and carry. This change has led to unique growth opportunities across various sectors while ensuring optimal outcomes for stakeholders involved.

Factors Driving the Shift in Private Equity M&A Focus

  • Increased competition: The rise of private equity, hedge funds, and other investment vehicles has intensified competition among acquirers. As a result, private equity firms are seeking out more strategic deals that can deliver higher returns.
  • Evolving market dynamics: Changes in global economic conditions have prompted many companies to pursue mergers or acquisitions as a means of achieving growth objectives faster than organic expansion alone could provide.
  • Rising valuations: With asset prices at historically high levels, acquiring undervalued targets becomes increasingly difficult. Consequently, PE firms must identify businesses with strong synergy potential that can justify premium valuations.

Benefits of Synergistic Acquisitions

  1. Better integration prospects: Synergistic deals often involve complementary businesses which allow for smoother post-acquisition integration processes leading to reduced operational redundancies and cost savings.
  2. Increase in market share: Acquiring a company with similar products or services helps expand an existing portfolio company’s customer base resulting in greater overall revenue generation capabilities.
  3. Cross-selling opportunities: By combining two entities operating within related industries, new sales channels may be unlocked, thereby boosting overall profitability.
  4. Strengthened competitive positioning: Synergistic acquisitions can enhance a company’s market position by improving its product offerings, geographic reach, or technological capabilities.

The shift in private equity M&A focus is a major trend that has been gaining traction over the past few years, and understanding its implications can be beneficial for both buyers and sellers. Exploring the varied approaches of acquirers engaged in M&A transactions is a key step to comprehending how these deals are formed.

Business Models of Acquirers in M&A Transactions

In the world of mergers and acquisitions (M&A), there are two primary types of acquirers: private equity firms and industrial or trade enterprises. Each maintains distinct business models with different approaches toward acquisition procedures, leading to varying results based on their goals and strategies.

Comparing Private Equity Owners’ Short-term Plans with Industry Buyers’ Long-term Integration Aims

Private equity firms typically focus on short-term value creation through operational improvements, financial restructuring, and strategic initiatives. Private equity firms strive to generate the highest possible returns for investors in a relatively short time period, typically ranging from three to seven years. On the other hand, industry buyers aim for long-term integration by leveraging synergies between target companies and their existing operations. This approach often leads to cost savings, increased market share, and enhanced competitive positioning.

Impact on Target Companies during Acquisition Processes

The differing objectives of private equity firms versus industrial acquirers can have significant implications for target companies throughout the acquisition process. For instance, while private equity owners may prioritize cost-cutting measures or divestitures as part of their value-creation strategy, industry buyers might invest more heavily in research & development or marketing efforts post-acquisition.

In addition to these differences in approach towards acquisitions themselves, it’s essential also to consider how each type affects overall deal structures such as financing arrangements – which could include leveraged buyouts (LBOs) utilized by many private equity firms or strategic alliances formed between industrial enterprises seeking mutual benefits from their combined resources.

Overall, the business models of acquirers in M&A transactions can be used to understand how each party’s goals are met and what strategies should be employed for a successful outcome. With that said, let us now look at performance within the aerospace, defense, and government sector to better assess trends among private equity investments.

Aerospace, Defense, & Government Sector Performance

In 2023, the aerospace defense government services sector outperformed the overall market with 433 deals recorded. This resilience in transactions can be attributed to several factors that drive growth and stability within this industry.

Key drivers behind robust performance within this sector

  • Global defense spending: With countries around the world increasing their military budgets, private equity firms are capitalizing on investment opportunities in innovative technologies and solutions.
  • Space exploration activities: The ongoing expansion into space has led to a surge of interest from both public and private entities alike. Private equity investments in space-related firms have experienced a sharp rise due to the ongoing exploration of outer space.
  • Cybersecurity concerns: In an increasingly digital world, cybersecurity is paramount for governments and businesses alike. Private equity firms recognize the potential for significant returns by investing in cutting-edge cybersecurity solutions.
  • Rising interest rates: The impact of rising interest rates on traditional investments has encouraged private equity firms to explore alternative sectors such as aerospace and defense for higher returns.

Trends observed among private equity investments

Besides these key drivers, there are notable trends shaping how private equity firms approach M&A transactions within this sector. For instance, increased collaboration between industrial partners, national security agencies, and financial sponsors has become more common. This synergy allows stakeholders to leverage each other’s expertise while minimizing risks associated with individual investments.

The aerospace, defense and government sector has seen a considerable rise in private equity investments of late. With this growth comes an increased need to understand entry strategies for PE firms looking to enter the defense industry; understanding risk mitigation techniques as well as ethical considerations is paramount when considering these investments.

Entry Strategies for Private Equity Firms in Defense Sector

As comfort levels towards risk factors associated with investing in the defense sector grow among private equity firms, they enter earlier stages within company life cycles than before. Additionally, avoiding kinetic weapon manufacturers allows entry without reputational risks attached.

Risk Mitigation Techniques Employed by PE Firms When Entering This Sector

Private equity (PE) firms employ various risk mitigation techniques to ensure successful investments in the defense industry. Some of these strategies include:

  • Focusing on non-weapon-related segments such as cybersecurity and space exploration technologies.
  • Investing in companies that provide services or products to both government and commercial customers, thereby diversifying revenue streams.
  • Diligently assessing potential targets’ financial performance, management team capabilities, and growth prospects through comprehensive due diligence processes.

Importance of Ethical Considerations When Investing

Ethical considerations play a crucial role in shaping investment decisions made by private equity firms within the defense sector. As responsible investors seeking long-term value creation opportunities for their portfolio companies, PE firms must carefully weigh the potential social and environmental impacts of their investments against expected returns. This approach not only helps maintain positive public perception but also ensures compliance with applicable regulations governing arms trade and export controls. This shows an increased interest from private equity players looking to invest responsibly while capitalizing on lucrative opportunities offered by aerospace, defense, and government sectors – ultimately contributing positively toward global security initiatives.

In conclusion, private equity firms must consider the risks and ethical considerations when entering the defense sector to ensure a successful acquisition. Regulatory monitoring and antitrust worries should be thoroughly contemplated when participating in mergers and takeovers within the defense sector.

Regulatory Oversight & Antitrust Concerns

The Department of Defense actively monitors potential transactions related to national security interests, providing recommendations concerning antitrust regulations where necessary. The Biden administration’s approach differs greatly from its predecessor’s stance on consolidation matters across industries, including defense-related businesses.

Impact of Regulatory Changes on M&A Transactions

In recent years, regulatory oversight has become increasingly stringent for private equity firms and other acquirers involved in the transportation and logistics sector. This is due to heightened concerns about market concentration and monopolistic practices that could potentially harm consumers or stifle innovation. As a result, companies must now navigate complex legal landscapes when pursuing mergers and acquisitions (M&A), which can sometimes lead to deal delays or even cancellations if not managed properly.

Antitrust Concerns in the Context of Private Equity Acquisitions

  • Maintaining competition: Regulators are particularly concerned with ensuring that M&A activity does not lead to reduced competition within an industry. For example, they may scrutinize deals involving dominant players acquiring smaller competitors or those resulting in significant market share concentration.
  • Potential price increases: Another concern is whether the acquisition will lead to higher prices for customers as a result of decreased competition among suppliers or service providers. In such cases, regulators may require divestitures or other remedies before approving a transaction.
  • National security implications: When it comes to defense-related businesses specifically, there may be additional scrutiny regarding any potential impact on national security. Regulators may have worries about foreign possession or control, as well as the possibility of confidential tech or data being exposed, when it comes to defense-related businesses.

Overall, private equity firms and other acquirers must carefully consider regulatory and antitrust issues when pursuing M&A transactions in the transportation and logistics sector. By working closely with experienced investment banking professionals, companies can better navigate these challenges while maximizing value creation opportunities.

Given the complexities of regulatory oversight and antitrust concerns, private equity firms must understand how to navigate these issues in order to facilitate successful M&A transactions. By understanding the role of private equity firms in facilitating bolt-on acquisitions, companies can gain insight into potential strategies for growth through mergers and acquisitions.

Key Takeaway: 

Private equity firms and other acquirers in the transportation and logistics sector must navigate complex regulatory landscapes when pursuing mergers and acquisitions. Regulators are concerned with maintaining competition, preventing potential price increases for customers, and national security implications. Working closely with experienced investment banking professionals can help companies maximize value creation opportunities while managing these challenges.

Role of Private Equity Firms in Facilitating Bolt-on Acquisitions

Private equity firms play a crucial role in facilitating bolt-on acquisitions, where they purchase another company to add it to their existing platform. This strategy allows for streamlined integration and value creation within the combined entity while reducing operational redundancies.

Benefits and Challenges Associated with Bolt-on Acquisitions

  • Cost-efficiency: By integrating complementary businesses, private equity firms can achieve cost savings through economies of scale and scope.
  • Faster growth: Adding new capabilities or expanding into new markets can accelerate portfolio companies’ growth rates.
  • Risk mitigation: Diversifying revenue streams helps reduce risks associated with economic downturns or industry-specific challenges.

The main challenge lies in executing a successful integration process that maximizes synergies without disrupting ongoing operations. Additionally, cultural differences between organizations may pose obstacles during the merger process.

Examples of Successful Bolt-on Acquisition Strategies

A prime example is The Carlyle Group’s acquisition of Axalta Coating Systems, which was followed by several bolt-ons that expanded its product offerings and geographic reach. Similarly, KKR acquired WebMD Health Corp., then added on various healthcare information services providers like Medscape and MedicineNet to create an integrated digital health platform (source). These cases illustrate how private equity firms leverage bolt-on deals to enhance their portfolio companies’ competitive positions while generating attractive returns for investors.

Private equity orgs have a significant part in helping bolt-on acquisitions, bringing both funds and knowledge to the table for successful deals. Moving on from this topic, comprehensive due diligence practices and value creation opportunities must also be considered when engaging in a merger or acquisition transaction.

Comprehensive Due Diligence Practices & Value Creation Opportunities

Private equity firms play a significant role in mergers and acquisitions (M&A) transactions, offering numerous benefits to their portfolio companies. One such advantage is the comprehensive due diligence practices they employ, which help ensure optimal outcomes for all stakeholders involved.

Key Components of an Effective Due Diligence Process

  • Financial Analysis: Private equity firms conduct thorough financial assessments of target companies, evaluating aspects like revenue growth, profitability margins, and cash flow management.
  • Operational Review: Operational efficiency is critical for long-term success. Hence, private equity firms analyze target companies’ business processes to identify areas that can be optimized or streamlined post-acquisition.
  • Risk Assessment: Identifying potential risks associated with the acquisition helps private equity firms develop strategies to mitigate them effectively. This includes assessing factors such as market competition and regulatory compliance requirements.
  • Cultural Fit Evaluation: An often-overlooked aspect of M&A transactions is ensuring a good cultural fit between the acquirer and target company. A strong alignment in values and work culture contributes significantly to successful integration efforts after the deal closes.

The Importance of Legal Histories Review During Target Company Evaluation

In addition to these components, it’s crucial for private equity firms to review legal histories during their due diligence process. This involves examining any past litigation cases involving the target company along with its intellectual property portfolio – patents, trademarks, copyrights, etc. – as well as relevant employment contracts and non-compete agreements, among other items. By conducting this thorough analysis, PE firms are better equipped to make informed decisions about potential acquisitions, ultimately maximizing value creation opportunities post-acquisition.

FAQs in Relation to Private Equity Mergers and Acquisitions

Do Private Equity Firms Participate in Mergers and Acquisitions?

Yes, private equity (PE) firms actively participate in mergers and acquisitions (M&A). They acquire companies to expand their portfolios, create synergies between businesses, or improve the operational efficiency of target companies. PE firms typically use a combination of their own capital and borrowed funds to finance these transactions.

What Is the Role of Private Equity in Merger and Acquisition Transactions?

The role of private equity in M&A transactions involves identifying potential targets, conducting due diligence, negotiating deals, providing financial resources for acquisitions, implementing operational improvements post-acquisition, and eventually exiting investments through various exit strategies such as IPOs or secondary sales.

How Is M&A Different from Private Equity?

Mergers & Acquisitions (M&A) refers to the process by which two or more companies combine or transfer ownership. Private Equity (PE), on the other hand, represents investment funds that focus on acquiring controlling stakes in established businesses with growth potential. While both involve buying and selling ownership interests in companies, PE focuses primarily on privately-held entities whereas M&A encompasses a broader range of transaction types including public company takeovers.

What Percentage of M&A Is Private Equity?

The percentage varies depending on market conditions; however, recent data suggests that approximately 20-30% of global M&A activity can be attributed to private equity deals. This figure may fluctuate based on factors such as economic cycles and industry trends but demonstrates the significant influence PE has within the overall landscape.


In summary, M&A in private equity is ever-changing due to the cutthroat atmosphere of the sector. Acquirers’ business models impact transaction processes, while growing comfort levels towards risk factors within defense sector investments have opened up new opportunities for earlier-stage investments. Due diligence practices play a crucial role in ensuring successful transactions.

If you’re looking to sell or invest in a transportation or logistics business, Clarke Advisors can help guide you through the complexities of private equity mergers and acquisitions. For expert advice on private equity mergers and acquisitions, reach out to Clarke Advisors now. Contact Clarke Advisors for expert guidance on private equity mergers and acquisitions.

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Maximizing Value in M&A Trucking Deals


As a professional in the logistics industry, it’s crucial to stay informed about transportation investments and deal flow. By delving into the trucking industry’s current landscape and its influence on North American package deals, this blog post provides an in-depth look at how major transactions are influencing logistics companies’ business development plans with expert Spencer Tenney’s (from the advisory firm Tenney Group) input, as well as advice for navigating significant deal flow and an examination of how larger deals are shaping business development strategies in the logistics space supply chain.

Table of Contents:

  • Identifying Potential M&A Opportunities in the Trucking Industry
  • Analyzing Financials of Target Companies
  • Negotiating Terms of Mergers & Acquisitions
  • Structuring Deals to Maximize Value
  • Closing Transactions & Executing Post-Merger Integration
  • FAQs in Relation to M&A Trucking
    • What is the biggest issue with the trucking industry in the United States?
    • What are the drivers of M&A?
    • What is the market structure of trucking?
    • How to get a M&A experience?
  • Conclusion

Identifying Potential M&A Opportunities

The trucking sector offers a plethora of M&A prospects. As an investment banking firm focused on transportation and logistics, we understand the complexities of this market. Our team is experienced in evaluating potential M&A targets, understanding supply chain capabilities, conducting due diligence, negotiating terms, structuring deals to maximize value, and closing transactions.

When it comes to identifying potential M&A opportunities in the trucking industry, our team starts by analyzing current trends. We look at factors such as consolidation within the sector; technological advancements; changes in customer demands; shifts in regulatory environments; and emerging markets that may be attractive for growth or cost savings. By understanding these dynamics from both a macro-level perspective and a micro-level view of individual companies’ operations, we can identify those with strong competitive advantages or weaknesses that could make them attractive targets for acquisition or merger activity.

Our team assesses the balance sheet strength of any potential target company by scouring key metrics such as revenue growth rate, operating margins, and cash flow patterns over time compared to competitors’ performance levels. We are always on the lookout for red flags that could be indicative of high debt levels or declining profitability indicators, which may pose a greater risk when investing in the business.

By understanding the competitive landscape of this industry, investors can identify potential M&A opportunities that align with their investment goals. Moving forward, it is important to analyze the financials of target companies in order to assess whether an acquisition would be a good fit for both parties involved.

Key Takeaway: As an experienced investment banking firm in the transportation and logistics sector, we analyze current trends to identify M&A opportunities for trucking companies. We thoroughly evaluate potential targets by looking at their balance sheets and scrutinizing key metrics such as revenue growth rate and operating margins before making any decisions – no stone is left unturned when it comes to ensuring a safe investment.

Analyzing Financials of Target Companies

When it comes to assessing the value of a target company for potential M&A opportunities in thisindustry, analyzing financials is key. This includes taking a close look at balance sheets, income statements, and cash flow statements. It’s important to identify any red flags that could indicate issues with profitability or liquidity before making an investment decision.

The financial analysis also involves looking at ratios such as debt-to-equity and return on assets (ROA). Examining ratios like debt-to-equity and ROA can give an indication of how well the firm is handling its funds and any potential threats that may come with investing in it. Additionally, evaluating historical performance trends can help determine if the company has been growing steadily or experiencing volatility over time.

It’s also essential to consider other factors beyond just financials when performing due diligence on a target company. These include competitive landscape analysis, customer segmentation data, market share information, pricing strategies, operational efficiencies, and more. Considering all the elements mentioned is necessary for a well-informed determination on whether or not an acquisition is prudent, both from a strategic and fiscal viewpoint.

Ultimately, thorough financial analysis is critical for understanding the true value of a transportation & logistics business prior to investing in it or pursuing an M&A transaction involving it. Thorough contemplation of all applicable info is a must for investors to accurately measure the hazard connected with their investments, guaranteeing maximum returns.

Analyzing the financials of target companies is a crucial step in any M&A process, as it provides an understanding of how potential investments or acquisitions could impact your business. Negotiating for M&A transactions necessitates an understanding of both entities’ finances to guarantee that all involved parties are content with the result.

Key Takeaway: Financial analysis is the cornerstone of any M&A transaction involving a trucking company, requiring deep dives into financials as well as an understanding of competitive dynamics and operational efficiencies. The risk assessment must be comprehensive to maximize returns on investment in order to make an informed decision about pursuing such deals.


Negotiating Terms of Mergers & Acquisitions

Navigating the intricate landscape of M&A deals necessitates a deep comprehension of financials, industry specifics, and legal understanding. Our team of specialists in the field can discover possible M&A possibilities for our customers. We understand the nuances of this sector and are adept at analyzing financials to assess target companies’ value propositions.

Our squad collaborates with purchasers or vendors all through the bargaining process to make certain they obtain the most advantageous deal feasible. We use data-driven strategies such as discounted cash flow analysis to accurately determine fair market values for target companies. This helps us structure deals that maximize returns on investments while minimizing risk exposure for our clients.

We also leverage our network of contacts within the industry when negotiating M&A transactions. Our relationships give us access to information about target companies not available through public sources, which allows us to better evaluate their potential upside or downside risks associated with a transaction before it takes place.

Hammering out the specifics of a merger or acquisition is critical for crafting lucrative and successful agreements. Structuring the arrangement in a way that optimizes value for all stakeholders is critical to guaranteeing prosperous and advantageous mergers or acquisitions.

We leverage our expertise and network in the trucking industry to negotiate M&A deals that maximize returns while minimizing risk for our clients. #MATA #TruckingIndustry Click to Tweet

Structuring Deals to Maximize Value

When structuring deals to maximize value, it is important to consider the needs of both parties involved. It is essential to create a structure that minimizes risk while ensuring both sides receive what they need from the transaction. This can be done by carefully evaluating each party’s goals and objectives and making sure those are met in the deal structure.

When considering M&A, one can opt for stock trades, asset purchases, or money-based arrangements – each having its own pros and cons that must be weighed when picking a suitable agreement. Each option has its own advantages and disadvantages depending on the situation, so careful consideration should be given when selecting an appropriate deal structure for any M&A transaction.

Taxation must be considered when crafting a deal, as it may drastically influence the value each party gains from the arrangement. For instance, if one party pays taxes before receiving their share of the proceeds, then they will end up with less money than expected which could lead to dissatisfaction with the final outcome of the transaction. Therefore, tax planning should be taken into account when negotiating terms of an M&A agreement in order to ensure maximum value for all parties involved.

In addition, other elements, such as warranties and indemnification clauses, should also be considered during negotiations as these provide additional protection against potential liabilities associated with any future claims made by either party after closing a deal. Negotiating these provisions upfront helps minimize risk for both sides while maximizing the overall value of an M&A transaction.

Structuring deals to maximize value requires an in-depth understanding of the industry, market trends, and financials. With that knowledge in hand, closing transactions and executing post-merger integration can be a smooth process.

Key Takeaway: When structuring these deals, it is essential to evaluate both parties’ goals and objectives while taking into account tax implications and warranties indemnification clauses in order to maximize value for all involved. Thorough haggling should be carried out to guarantee that all parties receive maximum benefit from the transaction.

Closing Transactions & Executing Post-Merger Integration

Closing transactions and executing post-merger integration plans are essential steps in the M&A process. As an investment banking firm focused on transportation, we understand the complexities of merging two companies into one. We have a team of experienced professionals who specialize in closing deals quickly and efficiently while ensuring all legal requirements are met.

Our staff will inspect all documents meticulously to make certain they are exact and comprehensive prior to authorizing any deals or contracts. Once signed, our experts will work with both parties to ensure a smooth transition into the new ownership structure by creating detailed integration plans that address operational changes, financials, staffing needs, etc. We take pride in providing comprehensive solutions tailored to each client’s unique situation so they can rest assured their interests are being taken care of throughout the entire process.

In addition to reviewing documents for accuracy and completeness, our team also offers advice on how best to maximize value when it comes time for closing transactions or integrating post-merger operations. Our team’s expertise in the field can help recognize potential prospects that may be overlooked but could potentially lead to higher profits if correctly utilized. We provide clients with actionable insights backed up by data so they can make informed decisions about their investments without taking unnecessary risks or making hasty choices due to a lack of information or experience in this area.

Key Takeaway: Our team of experienced investment bankers specializes in swiftly and efficiently closing deals in the transportation and logistics space, as well as providing actionable insights for maximizing value. We make sure all legal requirements are met while helping clients transition smoothly into the new ownership structure with detailed integration plans tailored to their unique situations.

FAQs in Relation to M&A in the Freight Market

What is the biggest issue with the trucking industry in the United States?

The biggest issue is a lack of driver availability. This has been exacerbated by an aging workforce, increasing regulations, and competition from other industries for labor. Additionally, rising costs associated with fuel and insurance have put pressure on margins, leading to decreased profitability for many operators. Finally, technological advancements such as autonomous vehicles are also creating uncertainty about future demand for traditional truckers. The market situation has become a challenge for truckers, making it hard to draw in and keep capable drivers at reasonable wages.

What are the drivers of M&A?

M&A drivers can be broadly classified into two categories: strategic and financial. Strategic M&A is propelled by a wish to attain an edge over the competition, like admittance to fresh markets or technologies. Financial M&A is motivated by potential cost savings, increased profitability, or higher returns on investments. Other factors that may drive an M&A include tax benefits, economies of scale from consolidation, diversification of risk exposure, and/or gaining control over resources in order to increase shareholder value.

What is the market structure of trucking?

The trucking market is primarily composed of two distinct structures: for-hire and private. For-hire trucking firms are those that sign contracts with shippers to move items from one place to another, while private fleets belong solely to companies that use them for their own shipping purposes. Both models offer advantages in terms of cost efficiency, flexibility, and control over transportation operations. The trucking sector is extremely competitive and dispersed, featuring numerous small- to medium-sized enterprises engaged in both for-hire and private fleet services.

How to get an M&A experience?

For those wishing to gain expertise in M&A within the transportation and logistics industry, a career as an investment banker is recommended. Investment bankers can give guidance to customers on how best to arrange their investments, for example, through M&A. They also help identify potential buyers or sellers for businesses, negotiate deals between them, assess financial risks associated with any proposed transaction, analyze data related to the business’s performance and operations, create presentations outlining potential opportunities for investors or lenders, evaluate market conditions that could affect a deal’s success rate and manage due diligence processes. With this expertise in hand from working with experienced professionals at an investment banking firm specializing in transportation & logistics M&A transactions will be well equipped with the necessary skillset needed for successful outcomes.


To maximize value when pursuing an M&A deal, it is important to identify potential opportunities through market analysis, analyze the financials of target companies, negotiate terms effectively, and structure deals appropriately. With careful planning and execution on all fronts of the transaction process, from identification to post-merger integration, successful transactions are achievable.

Let Clarke Advisors help you navigate the complex world of transportation M&A. Our experienced team will guide you through every step to ensure a successful transaction.

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What’s Up?

What are we working on? As of 11/14/19 these are our Companies for sale:

1. MN based refrigerated carrier, $30 mil / $7 mil EBITDA
2. FLA based refrigerated carrier,$44 mil/ 11 mil EBITDA
3. Chicago based refrigerated carrier, $18 mil / $3 mil EBITDA
4. Chicago based refrigerated carrier, $50 mil / $9 mil EBITDA
5. Chicago based Intermodal, $16mil / $3mil EBITDA
6. South Texas 3PL / warehouse, $ 8 mil / $1.4 EBITDA
7. Utah based bulk/flatbed carrier, $30 mil / $7EBITDA
8. ID based bulk food grade carrier,$24 mil / $5 mil EBITDA
9. TX based LTL/FTL carrier, $65 mil / $11 EBITDA
10. TX based Non Asset Logistics $ 4 mill / 300K EBITDA
11. NW based Non-Asset NVOCC and domestic logistics, $8.5 mil / 700K EBITDA
12. CA refrigerated/van carrier $30 mil / $7 mil EBITDA
13. OHIO based specialty refrigerated carrier (pharma) $15 mil / $1.8 EBITDA

We may have more and this does change. Contact:

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Clarke Team Current Projects

2018 has been a great year for the value of transportation companies, and the fourth quarter of this year continues the trends. The Clarke team is representing the following:

$45 million MW Refrigerated Carrier, Sell Side

$15 million SE Flatbed Carrier, Sell Side

$16 million TX Flatbed Carrier, Sell Side

$15 million Last Mile Delivery, Distressed Sale

SW based Cooling Technology Company, Debt and Equity Capital Formation

$20 million MW Logistics Company, Sell Side

$18 million MW Intermodal Company, Sell Side

$16 million MW Intermodal Company, Sell Side

$70 million TX Carrier, Sell Side

$34 million MW Refrigerated Carrier, Buyside Services

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CVF Invests in OffSpec Solutions

CVF Capital Partners (“CVF”), a Sacramento, CA based private equity firm, announced on September 21, 2018 that it has made a $6 million investment in Off Spec Solutions, LLC (“Off Spec Solutions” or “the Company”), a leading over-the-road trucking company servicing customers throughout the on Pacific Northwest and the Intermountain West. Daniel and Chris Salvador, co-founders and CEO and COO respectively, elected to partner with CVF to help finance Off Spec’s growth initiatives and will continue in their roles as day-to-day management of the Company.

Founded in 2009 and based in Nampa, Idaho, Off Spec Solutions is a leading over-the-road trucking company with tech-enabled enterprise transportation and freight brokerage solutions. The Company currently helps provide the transportation needs of leading food manufacturers and Ag producers throughout the western U.S. Off Spec Solutions’ proprietary technology platform, Dispatch Assistant®, enables the company to optimize their transportation deliveries, reduce transportation costs, ensure on-time deliveries, and effectively manage the complex supply chains of their customers.

The American Trucking Association summarized the role of trucking best, calling it the “literal lifeblood of the U.S. economy”. Trucking is the physical backbone of the food and Ag industries, together with e-commerce and person-to-person shipments accounting for over 70% of total freight tonnage. In the US alone, spending on overland logistics reached over $700 billion in 2017.

Daniel Salvador, Off Spec’s CEO and co-founder, commented, “The Off Spec Solutions’ team is very excited to partner with CVF as we enter the next stage of the Company’s growth. We believe there is a significant market opportunity available and are positioned to capture it with CVF’s support. We look forward to building our business both organically and through acquisitions, while continuing to deliver best-in-class solutions to our regional and national customers.”

Chris Salvador, Off Spec’s COO and co-founder, mentioned, “We continue to develop deep relationships with our growing customer base. We look forward to growing with them and providing their over-the-road trucking needs long into the future.” He continued, “The Company is well-positioned to benefit from the region’s continued economic expansion, which has fueled the sector’s growth and created increasingly complex supply chains.”

CVF Managing Partner, José Blanco, added, “CVF is the ideal financial partner for the Salvadors and Off Spec given our longstanding interest in the sector and deep expertise in industrials, transportation, and logistics.” He continued, “Our investment in Off Spec Solutions aligns well with our mission to partner with companies that benefit from strong macroeconomic tailwinds and have clear opportunities to achieve above-market growth. We are excited to partner with such a high-quality company led by an exceptional, purpose-driven management team.”