Trucking Mergers and Acquisitions Show Signs of Stabilization Amid Freight Market Conditions

Trucking Mergers and Acquisitions Show Signs of Stabilization Amid Freight Market Shifts

As the freight market experiences fluctuations, the trucking mergers and acquisitions sector is showing signs of stabilization, offering hope for increased activity in the near future. The coronavirus pandemic initially led to a surge in freight activity and acquisitions, but as market conditions soured, the trend slowed down. Now, with conditions steadying, industry experts are optimistic about a potential rebound later this year.

Jonathan Britva, managing director at Republic Partners, described the current state of the market as a “mixed bag,” noting an increase in conversations and interest from potential buyers. He mentioned that sellers are becoming more realistic about their values, but many are confident in their ability to weather the storm and bounce back.

Spencer Tenney, CEO of Tenney Group, observed a spike in interest during the first quarter compared to the previous year. He highlighted that buyers and sellers are engaging in conversations, with several deals close to being under contract. Tenney expects a full normalization of activity to occur in the third or fourth quarters of the year.

Gaurang Shastri, managing director at Lincoln International, expressed a positive outlook, stating that recent deals align with last year’s trends and indicate more stability in the freight market. He emphasized the abundance of capital available and the potential for interest rates to decrease, further supporting M&A activity.

Overall, industry experts anticipate multiple waves of sellers entering the market as conditions stabilize and buyer interest increases. The gradual turnaround in the freight market, coupled with a more stable environment, is expected to drive a resurgence in trucking mergers and acquisitions in the coming months.