Industries Served

Transportation & Logistics

  • Freight and cargo delivery
  • Local mail and courier delivery
  • Long-distance freight trucking
  • Logistics SaaS companies
  • School transportation
  • Cargo, trucking and shipping logistics
  • Courier and messengers services
  • Automotive and Motorcycle dealerships
  • Airlines & tourism

Beacon has experience working with professionals in the transportation and logistics industry.

Mandate

Beacon was engaged by 20 year-old freight and trucking company based in Maple, Ontario. The business specialized in transporting over-sized freight and heavy equipment across Ontario. The business had a large fleet of trucks and trailers, which it engaged to, provide logistics solutions to over 200 clients all across Ontario. The business was undergoing large scale reorganization as part of a strategic plan, and required valuation advisory services for this purpose. Due to Beacon’s expertise in business valuation and experience working with logistics service providers, we were engaged in an advisory capacity to provide an assessment of the business’ fair market value.

Implementation

Beacon began by carefully assessing freight trucking and other delivery service industries in Canada. Based on extensive industry research and company analysis, Beacon developed a comprehensive fair-market assessment report. Throughout the valuation process, we were closely involved with our clients and made sure we developed a deep understanding of the business and its operations.

Outcome

As an independent third party advisor, Beacon was able to provide an unbiased fair-market value assessment to our clients. Beacon used a weighted average method using precedent transactions as well as intrinsic valuation methodologies. The end result was an addition to Beacon’s large family of satisfied clients.

Industry Overview

This industry includes third party delivery and courier services that deliver freight, cargo, shipments, mail and other items via air, water or land. The industry also includes logistics Software companies that manage logistics and assist with trade and compliance. Major suppliers include oil refineries, vehicle manufacturers, and software companies. Target customers range from corporations and manufacturers to individual customers. The industry is in its mature stage and lightly regulated. Companies that deal with international deliveries face slightly higher regulation due to trade and compliance factors. As a fragmented industry, there is strong potential for consolidation. Major players have been growing through tuck-in acquisitions across the globe to enhance their global distribution network and exploit location specific advantages. Going forward, the industry is expected to face some turbulence due to political tensions and uncertainties relating to trade. The possibility of a U.S.-China trade war and a no deal Brexit has created fear among consumers. The IMF has cut its global growth outlook and predicts global growth to slow down. In addition, the possibility of a market correction will create head winds for this industry over the next couple years. This will be offset in the long-term by increasing globalization and e-commerce which facilitates international trade.
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