The transportation and logistics sector could be in for a new wave of mergers and acquisitions as companies struggle with supply chain disruptions and enduring inflation, according to a report from the Cleveland, Ohio-based advisory and investment bank Brown Gibbons Lang & Company (BGL).
Those pain points of the current economic environment can create business opportunities for transportation service providers (TSPs), the firm said.
“While we recognize the pressure higher prices bring, supply chain disruptions coupled with a prolonged inflationary environment can create opportunities, especially as these factors are compounded by environmental and regulatory mandates, which we think will result in a new wave of M&A activity within the transportation, logistics, and supply chain sector,” Craig Decker, Managing Director and lead banker for the Supply Chain & Logistics Services investment banking team at BGL, said in a release.
Now a report from the law firm examines: factors that will lead TSPs to broaden their service profile and modal approach, how government mandates will impact service providers, and the opportunities that exist for the domestic transportation sector.