GCG’s Q4 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 Transportation & Logistics industry continued to maneuver its way through disruptions in the global supply chain and weakened consumer demand for moving goods. Public equities across the industry had a volatile fourth quarter that was unusually slow for what is typically a high-volume, high-demand time of the year.
- On a 3-year period ending in December 2022, all sectors within the Transportation & Logistics industry outpaced the S&P 500, which had an 18.7% return. The Trucking sector has continued to give the best returns, followed by Third-Party Logistics, Air & Express Delivery Services, and Freight Rail (77.1%, 43.7%, 40.8%, and 31.2%, respectively).
- M&A activity in the Transportation & Logistics industry slightly decreased, with 57 deals closed in Q4 2022. Additionally, the average deal value (based on transactions with reported values only) normalized in Q4 following a significant increase in Q3. The decrease in deal size could signal that buyers are focusing on tuck-in acquisitions to bolster their offerings rather than seeking premium targets to acquire.
Click here for the full update.