Transport Topics | Mergers and Acquisitions Market Begins to Accelerate

Nov 2023

Originally posted by Transport Topics on November 13, 2023.

Mergers and acquisitions (M&A) activity is anticipated to rise, given the stabilization of economic challenges and the adaptation of industry players to the new normal. This trend is supported by Lincoln International’s sector data.

Gaurang Shastri, Managing Director in Lincoln International’s Business Services Group, explained that stability and certainty are a requirement for accelerated M&A activity and those components were lacking over the past 12 to 18 months.

Strategic buyers have been a large player in H2 2023 activity as they are less dependent on the credit markets and are well-positioned to unlock synergies in less attractive transactions.

“We looked at some of the data again through the end of Q3, and I think almost two-thirds of the deals that were done in the sector were done by strategic buyers,” Gaurang commented. “Even those that were done by private equity, they had a little bit of a strategic element to it, meaning that these were mostly add-on acquisitions versus new platforms being invested in.”

View additional insights in the original article.

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