GCG’s Q3 2022 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:
- The overall industry is in an interesting position as consumer spend stagnates and manufacturing slows down due to record inflation levels, while companies sit on an abundance of goods needing to be shipped from months of backorders and pre-orders due to supply chain concerns. However, the increase in employment across the sector and the anticipated rise in demand for shipping services from the holiday season are reasons for optimism in the sector for Q4 and the beginning of 2023.
- On a 3-year period ending in September 2022, all sectors within the Transportation & Logistics industry outpaced the S&P 500, which had a 21.5% return. The Trucking sector has continued to give the best returns, followed by Third-Party Logistics, Freight Rail, and Air & Express Delivery (74.1%, 37.3%, 34.0% and 32.1% respectively).
- M&A activity in the Transportation & Logistics industry slightly increased, with 63 deals closed in Q3 2022, returning to the same level seen in Q1 of this year. Additionally, the average deal value significantly increased this quarter. The increase in average deal value points to companies seeking out premium acquisition targets rather than smaller-sized add-ons.
Click here for the full update.