mergers&acquisitionsnews hot buyers


REF: 06151 Location: FELIXSTOWE (FXT) EBITDA: £250,000 - £1,000,000 Type: Ocean Freight Forwarder Reason: Growth Strategy


REF: Various


Location: HEATHROW (LHR) EBITDA: £250,000 - £2,000,000 TYPE: Air Freight Reason: Increase Air volumes


REF: 06768 Location: MANCHESTER (MAN) EBITDA: £150,000 - £750,000 Type: Ocean / Air or Fulfilment Reason: Continued Growth


REF: Private Equity Location: UK ALL EBITDA: £2,000,000+ Type: Air / Ocean /Road Reason: Private Equity Backing


REF: 06419 Location: Birmingham (BHX) EBITDA: £150K – £500,000+ Type: E Fulfilment / Air Freight /Pallets Reason: GrowthMarket Share


REF: 06555 Location: UK & Europe EBITDA: £250,000 – £2M+ Type: UK / European Road Freight Reason: 2014 / 15 Growth Strategy


REF: 03971 Location: Aberdeen (ABZ) EBITDA: £200,000 - £2M+ Type: Oil & Gas Reason: Increased Market Share


The seller can benefit through an earn out with a profit share scheme, this basically equates to performance related increases in deferred payments.


This is simply where EBITDA during the earn out period is above the level stipulated within the Heads of Terms and the seller receives a specific percentage of this increase, above the arranged deferred payment amount.


The percentage of profit share can range anywhere from 10% right up to 50%, which is all dependant on the circumstances around the increase. This quite often proves to be very lucrative to some sellers who experience cost savings and increases in turnover and profitability as a result of the acquisition.


When planning ahead for your exit strategy remember the last part of the puzzle could be committing to an earn out to achieve a successful transaction and maximise value for your business!


acquisition opportunities


Company REF: 151403 USA Based Global Project Cargo Handler & Freight Forwarder


• Specialist in Project/Cargo Management, ocean transportation and warehouse & distribution management.


• Contains a very well established freight operation, in business for 28 years


• Global Operation, 13 office locations • Consistently profitable with net profit margin of 9.6%


• Rapidly increasing growth year on year and expected 2015 gross revenue of $40 million


• Key Financials: Turnover: $27.24m, Gross Profit: $9.68m, Net Profit: $2.61m, Assets $19.60m


Company REF: 08958 Brazilian Freight Forwarder


• Presently ranked in the top 50 forwarders in Brazil


• State of the Art IT infrastructure and software in place


• 3 offices in group • 40 highly qualified staff • Owner willing to remain over transition period


• $1M (USD) EBITDA


Company REF: 06156 Multimodal Freight Forwarder based in the North West, UK


• Well respected & long established company trading for over 30 years


• Ocean Freight Specialist • Consistently profitable - 22% - 25% GP margins


• Strong identity, excellent name within the industry


• Very good widespread client base • Great links with Indian Sub-Continent, Asia and Europe


• 73% ocean freight, 20% road freight • Strong network of overseas agents – a large number of cross trade shipments carried out


Company REF: 1338 International Freight Forwarder based in the South East


• Well established and respected Freight Forwarder


• Specialise in Niche markets which have given good returns even during the recession


• A1 credit rating with all the Agencies • An excellent spread of customers • Turnover - £4,000,000


Company REF: 06474 European Road Freight Specialist based in the North, UK


• Well established after trading for nearly 20 years


• Strong annual sales and turnover/gross profit ratio


• Consistently profitable • Specialists in European Groupage Road Freight


• Storage & Distribution • Very good customer spread – no account represents more than 5%


• Well positioned for growth • Experienced and loyal staff • Owner looking to retire


Buyer Mandate REF: 6902 International Group looking to expand their UK operation with acquisitions over the coming months.


Preferred Criteria:-


• UK based Air, Ocean or Road solutions provider


• Non-Asset based or with limited assets • Net Profit greater than £250,000 and up to £3M


• Owners looking to release equity but may not have aspirations to retire


Company REF: 178709 South East, UK-based Multimodal Freight Forwarder


• Well established after trading for 10 years


• Revenues 80% Air & Sea 20% Logistics & Distribution


• Specialists in E-Commerce • Strong trade links with both Asia & the USA


• 45,000 sq ft dedicated fulfilment centre


• Low risk/diverse spread of clients - largest represents 18% of profit - majority only 1-2%


• Excellent Supply Chain Technology


Buyer Mandate REF: 2760 Well established UK Freight Forwarder looking to expand their capacity and capabilities across a wider area of the UK


Preferred Criteria:-


• Domestic & international parcel delivery capabilities via a third party carrier


• Turnover £2 million - £10 million • Pre-tax net profit of 3%> • Deal structure subject to discussion regarding the exiting and remaining management team


• Ideally located in the Midlands Benefits of an Earn Out


Earn outs are increasingly being included in acquisitions within the freight industry, but what are the benefits to the buyer and seller?


As in any industry and with any M&A transaction there seems to be a difference in valuation between buyer and seller when valuing a company. This is where a well-structured earn out can be a great way of bridging the gap.


Enter the “Earn Out Period”. It limits the risk to the buyer by writing an earn out period into the Heads of Terms and submitted to the seller for consideration. An Earn Out will stipulate a rationalized level of EBITDA that the seller will be required to achieve over a set period of time in order for deferred payments to be released to the seller at the agreed rate.


Planning your exit strategy?


For a free initial conversation or meeting, please contact the below: Jack Lonnen, Senior M&A Advisor - UK & Europe James Hughes, Senior M&A Advisor - International


Phone: +44 (0)845 00 00 007 Email: jack@headfordgroup.com / james@headfordgroup.com Web: www.headfordgroup.com


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36