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Transportaon & Logiscs Industry Update KEEP ON TRUCKIN’ by Greg Lafin, Managing Director, glafi[email protected] TRUCKING & TRANSPORTATION INDUSTRY UPDATE – HY 2016 OUTLOOK BKD Corporate Finance, LLC (BKDCF) has seen an increase in the acvity of mergers and acquisions (M&A) consolidaon occurring in the trucking and transportaon segment. This trend is expected to connue throughout the next five years, with market experts forecasng annual growth of 3 percent. BKDCF’s industry observaons are detailed below. Slow U.S. economic growth combined with an increase in consumer spending will connue to boost demand for services. Although it’s been a bumpy ride, demand connues to climb for companies in this sector. The industry has recovered most of the ground lost during the recession, with industry profit margins expected to connue improving over the next several years. Key external drivers 1 include: Industrial Producon Index Freight Transportaon Services Index • Consumer spending Price of crude oil • E-commerce sales Larger operators will connue to expand their operaons both geographically as well as through value-added services. 1 Keys to M&A consolidaon: Access to quality personnel Customer relaonships Opmum capacity ulizaon Technology Governmental policies and regulaon Very compeve landscape Increased supply chain complexity Related Industry Subsectors Long-Distance Trucking Local Specialized Trucking Tank & Refrigerated Trucking Local Specialized Freight Trucking Freight Forwarding & Brokerages Warehouse & Fulfillment Services 1 IBISWorld Local Freight Trucking in the US, IBISWorld Freight Forwarding Brokerages in the US 4/2016. MEET THE AUTHOR Greg Lafin // Managing Director // glafi[email protected] // 630.282.9569 Greg is the head of BKD Corporate Finance, LLC’s Chicago office and has provided merger and acquision advisory services to small and midsize businesses for more than 20 years. He has extensive experience in providing investment banking services including seller services, acquision searches, due diligence, financial structuring and modeling, negoaon support and profit improvement advisory support. bkdcorporatefinance.com

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Transportation & Logistics Industry Update KEEP ON TRUCKIN’

by Greg Lafin, Managing Director, [email protected]

TRUCKING & TRANSPORTATION INDUSTRY UPDATE – HY 2016 OUTLOOK

BKD Corporate Finance, LLC (BKDCF) has seen an increase in the activity of mergers and acquisitions (M&A) consolidation occurring in the trucking and transportation segment. This trend is expected to continue throughout the next five years, with market experts forecasting annual growth of 3 percent. BKDCF’s industry observations are detailed below.

Slow U.S. economic growth combined with an increase in consumer spending will continue to boost demand for services.

Although it’s been a bumpy ride, demand continues to climb for companies in this sector. The industry has recovered most of the ground lost during the recession, with industry profit margins expected to continue improving over the next several years.

Key external drivers1 include:

• Industrial Production Index • Freight Transportation Services Index

• Consumer spending • Price of crude oil

• E-commerce sales

Larger operators will continue to expand their operations both geographically as well as through value-added services.1

Keys to M&A consolidation:

• Access to quality personnel • Customer relationships

• Optimum capacity utilization • Technology

• Governmental policies and regulation • Very competitive landscape

• Increased supply chain complexity

Related Industry Subsectors

Long-Distance Trucking

Local Specialized Trucking

Tank & Refrigerated Trucking

Local Specialized Freight Trucking

Freight Forwarding & Brokerages

Warehouse & Fulfillment Services

1IBISWorld Local Freight Trucking in the US, IBISWorld Freight Forwarding Brokerages in the US 4/2016.

MEET THE AUTHOR

Greg Lafin // Managing Director // [email protected] // 630.282.9569

Greg is the head of BKD Corporate Finance, LLC’s Chicago office and has provided merger and acquisition advisory services to small and midsize businesses for more than 20 years. He has extensive experience in providing investment banking services including seller services, acquisition searches, due diligence, financial structuring and modeling, negotiation support and profit improvement advisory support.

bkdcorporatefinance.com

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TRANSPORTATION & LOGISTICS INDUSTRY UPDATE

PUBLIC COMPARABLES – TRUCKING COMPANIES

PUBLIC COMPARABLES – LOGISTICS COMPANIES

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TRANSPORTATION & LOGISTICS INDUSTRY UPDATE

TRUCKING & LOGISTICS PUBLIC COMPANIES COMPOSITE: EV/EBITDA

PRIVATE EQUITY MULTIPLES

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TRANSPORTATION & LOGISTICS INDUSTRY UPDATE

SELECT INDUSTRY ACQUISITIONS

BKD CORPORATE FINANCE SERVICES• Strategic options analysis

• Sell-side representation

• Buy-side representation

• Capital raises

• Strategic affiliation process representation

• Transaction process management

• LOI or financing term sheet negotiation

• Due diligence process & closing management

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TRANSPORTATION & LOGISTICS INDUSTRY UPDATE

SELECT INDUSTRY ACQUISITIONS