GCG’s Q4 2021 Transportation & Logistics Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.
Key findings include the following:
- Public equities across the Transportation & Logistics industry rebounded in Q4 2021 after a slight decrease in Q3. The Transportation & Logistics industry has been greatly impacted throughout 2021 by regulations, technological disruption, and the increasing labor challenges leading to a shortage of drivers.
- On a 3-year period ending in December 2021, all sectors within the Transportation & Logistics industry outpaced the S&P 500, which had an 88.2% return. The Trucking sector led the way, followed by Air & Express Delivery, Third-Party Logistics, and Freight Rail (201.0%, 130.4%, 120.4% and 91.7% respectively.)
- The volume of M&A activity in the Transportation & Logistics industry slightly increased, with 63 deals closed in Q4 2021, compared to 60 during the prior quarter. While activity within the industry grew, the average deal value (based on transactions with reported values only) interestingly decreased to its lowest value since Q1 2021. The decrease in value shows that buyers are shifting their attention to mid-range transportation and logistics companies when searching for a possible acquisition.
Click here for the full update.