Does anyone have experience in asset-light 3PL?

intermediary profile

February 16, 2022

by an intermediary from The University of Chicago - Booth School of Business in Rockford, MI, USA

I'm currently looking at 2 deals in this space, $3-5M in EBITDA, and am being given some pretty high valuations. I'm wondering what others are seeing in the market right now and if anyone has an opinion on using TTM EBITDA or a blended EBITDA, considering the massive and (likely) unsustainable growth we've seen in logistics since the beginning of the pandemic.

I would appreciate any thoughts you all may have!

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commentor profile
Reply by a professional
from The College of New Jersey in La Verne, CA 91750, USA
There is a fair amount of consolidation going on in the industry right now given a combination of motivated boomer exits with high expected valuations on the sell side and private equity dry powder and sophisticated deal structures on the buy side. Demand for these companies is very high right now as well. I've seen private equity deals in the sub-$10 million ebitda range so you're probably competing with private equity capital to a certain degree. Happy to chat about what I've seen. Send me a message if you'd like to connect.
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Reply by a professional
from Bentley College in Miami, FL, USA
I think ^redacted‌ might be able to offer some thoughts here.He recently wrote this post on LinkedIn that I think may be relevant:https://www.linkedin.com/pulse/third-party-logistics-3pl-company-valuations-december-bratcher-asa/
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