Any thoughts on valuing a logistics company?

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February 05, 2020

by a searcher from University of Virginia-Darden - Darden School of Business in St. Louis, MO, USA

I'm looking at a regional trucking company with a variety of services. FTL, LTL, Local P&D, warehousing, and brokerage. I have a good bit of experience in the technology side of the business, but don't really know where to start on valuation other than standard business metrics. Any tips?

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Reply by a searcher
from University of Virginia in New York, NY, USA
Patrick,
Lots of Investment Banking firms give quarterly updates on the state of the industry, particular strong middle-market firms like Harris Williams. These updates include public multiples, M&A precedent transactions and key industry metrics to follow. Check out the link below to start.

https://www.harriswilliams.com/industry-update/transportation-logistics-update-december-2019

Don't be afraid to reach out to firms that specialize in that industry. Find the group head or a VP and shoot them an email. If they don't post it on their site they are often blasting it to clients and it is no skin off their back to add you to the list. One day you may be looking for a sell-side adviser and remember who helped you out along the way. Go Hoos!
commentor profile
Reply by a searcher
from University of Virginia in St. Louis, MO, USA
I don't know if it's appropriate, or if it's considered noise, to say thank you on SearchFunder, but thank you all anyway. Your posts have been a big help. I'm getting more details from the target next week and may follow up with a couple of you afterward. I try to be respectful of NDA's so it's hard to get much detail out.
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