There’s Only One Direction and That’s Up: Transportation
and Logistics Companies Expected to Wake After Sleepy Period

Abstract

Deal volume in the transportation and logistics sector hasn’t been booming in the last few years. Exits in the sector have been declining from 13% of overall exit activity in 2010 to 8% in 1H 2012, and a paltry 4% in 2H 2012. The average exit size has continued to decline from an all-time high of $409 million in 2009 to $173 million in 2012.“Macroeconomic conditions have been tough; commodity prices and consumers’ inability to spend during the recession took a toll on transportation and logistics companies as well as investors in the sector,” says Chad Rash, a Managing Director of Grant Thornton’s Transaction Advisory Services group.

TOPICS: Private equity, other real assets, portfolio construction, equity portfolio management