Will the explosive nature of M & A activity in the last-mile space continue into 2023 ? Or will the environment level off and normalize ?
And what should last-mile providers do to prepare for the next 12 months ? Build a fortress or let down the moat and welcome the visitors ?
he Customized Logistics & Delivery magazine put these and other questions to a panel of experts who are involved in various phases of the M & A process for their predictions about the future of today ’ s red-hot market .
They included :
Peter M . Berg , Principal & Last Mile Practice Leader at TrueNorth Companies
. He handles buy-side due diligence for strategic and financial buyers ; sell-side advising and business planning . He expects M & A activity in the last-mile space to stay the same as 2022 .
Spencer Tenney , President & CEO at The Tenney Group
who provides the company ’ s vison and resources and support for multiple industry specialized M & A teams . He is anticipating growth in the M & A activity for last-mile companies in 2023 .
Heidi Hornung-Scherr , President and Attorney at Scudder Law Firm
. Her primary responsibilities are structuring , documenting , negotiating , and executing M & A transactions as buy-side and sell-side counsel for publicly traded and privately held companies . She is anticipating that M & A activity for last-mile providers in 2023 will be the same as it was in 2022 .
Here ’ s their take on the next 12 months :
CLDA Mag : What will drive M & A activity in this space in 2023 ?
Berg : We expect to see continued , almost overwhelming , interest in last-mile M & A activity from buyers of all types . Strategic acquirers ( which includes new entrants , e . g ., the international shipping community ) will continue to use M & A as a growth and diversification tool . Investment from financial acquirers continues to accelerate as they find opportunities to aggregate similarly-situated value propositions , especially those in sub-specialty niches , and obtain more favorable returns than equity markets .
Tenney : Large carriers are continuing to add services that will enable them to have pricing power from an end-to-end supply chain solution standpoint . One of the most active and rapidly growing verticals is the final-mile space , where ecommerce and “ ease of delivery / installation ” continues to be attractive to consumers across all sectors . Carriers will want access to this space as it provides ample opportunities for the future . Lastly , aging baby boomer business owners without internal successors will need to transition the business in 2023 . This , along with the need combat rising expenses across the board , will contribute to high M & A activity in the upcoming year . fall 2022 customized logistics & delivery Magazine 27