mergers&acquisitionsnews hot buyers


REF: 08996 Location: NORTH WEST EBITDA: £200,000 - £1,500,000 Type: Air / Ocean Freight Forwarder Reason: Market Consolidation


REF: Various Location: HEATHROW (LHR) EBITDA: £250,000 - £2,500,000 TYPE: Air Freight Reason: Increase Air volumes


REF: 18878 Location: MANCHESTER (MAN) EBITDA: £150,000 - £950,000 Type: Ocean / Air or Fulfilment Reason: Growth Strategy


REF: Private Equity Location: UK ALL EBITDA: £1,500,000+ Type: Air / Ocean /Road Reason: Private Equity Backing


REF: 204875 Location: MIDLANDS EBITDA: £150K – £500,000+ Type: E Fulfilment / Air Freight / Pallets Reason: Growth / Location


REF: 01334 Location: UK & Europe EBITDA: £150,000 – £5,000,000 Type: All Reason: General Growth


REF: 02016 Location: UK ALL EBITDA: £200,000 - £1,500,000+ Type: Oil & Gas Reason: Diversification


Is Market Consolidation just around the corner for the UK Freight


Market? Is market consolidation just around the corner for the UK freight market?


The US has a number of large companies running a consolidation strategy presently but will the UK follow in the footsteps of the home of Mergers & Acquisitions?


Early analysis of the UK market suggests that there will be an increase in privately owned business owners looking to create an exit plan for themselves / shareholders over the coming years creating ample opportunity for business believing consolidation is a beneficial strategy.


The main drivers of Market Consolidation are likely to be:


• Highly financed and profitable Chinese and other Asian business taking direct representation in the UK •


Improving global reach – The UK is a key location to be able to roll out offices in to Europe


• Geographical Growth by European Forwarders creating an opportunity for value added services and cross sales • Overseas multi-nationals looking to develop their UK presence • A highly fragmented UK market


Recent BIFA released statistics confirming the Top 10 UK forwarders only represent 18% of the market. This is able to create a real opportunity for an international buyer to start competing with the TOP 10 through strategic purchases of companies in each key freight location – London Heathrow, London Gatwick, Felixstowe, Birmingham, East Midlands, Manchester, Liverpool, Aberdeen etc.


Are we going to see a consolidation exercise? Looking at the drivers I would think so…. acquisition opportunities


Company REF: 06461 UK Freight Forwarder based in the North of the country


• 40% Air | 40% Ocean | 20% Road • 95% of Revenue from Exports • The business has a diverse spread of clients including 50 - 60 live trading accounts per month


• Vertical coverage includes textiles, chemicals and retail


• The business has a strong cash reserve with no external borrowing


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


Company REF: 06375 Midlands, based Freight Forwarder & Export Packer


• Established business 20+ years of trading


• Revenues – 20% Air Sea / 20% Import / 20% Road / 20% courier / 20% Packing


• Export Packing division generating strong profits


• 10,000 sq. ft. warehouse and office space


• Low risk/diverse spread of clients - largest represents 7% of profit


• Over 400 trading clients • Adjusted EBITDA of £500,000 Per Annum


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: 6902 International Group looking to expand their European operation with acquisitions in the UK, BeNeLux or Germany.


Preferred Target Criteria:- Preferred Target Criteria:-


• Asset light Air, Ocean or Road solutions provider


• Net Profit greater than £250,000 and up to £3M


• Majority of business controlled by the business. Adhoc or contract


• Diverse spread of clients (no customer exceeding 10% of profit)


• Air / Sea freight a major activity of the business (with the USA as one of the main routes of particular interest)


• IATA membership • Short earn out can be facilitated / potentially 6-12 months.


• Relatively asset light & profitable • 100% share sale only • Turnover range between £1m - £15m


Buyer Mandate REF: 7107 A large European company is looking to source a UK based freight forwarding company to expand their air and ocean market share.


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%


Company REF: 06199 UK Independent Forwarder with multimodal services


• Major road freight (FTL) provider based across multiple offices


• Extremely stable trading history with consistent profit


• Recent diversification into Air & Ocean freight proving strong growth markets (33%)


• Established and solid management team to remain


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


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