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Developing the Right M&A Strategy Is Key 6. Building Robust M&A Capabilities Is Critical to Execution 7. Executive Summary 2. Where Does the Industry Go From Here? 5. M&A Market Observations 4.Contents 1. End Notes 9. About the Authors 4 5 6 8 11 12 13 14 15 . Why M&A—and Why Now? 3. Conclusion 8.
these are a mere starting point. Given that companies have aggressive growth targets that are difficult to achieve quickly in the current economic environment. Research conducted by Accenture has found that F&L companies were active users of M&A in the past decade and that M&A is becoming a particularly important tool for F&L companies to address their growth challenges. In Accenture’s view. 3. freight and logistics (F&L) companies again are setting their sight on growth. The data provides some early indications that F&L companies’ deal rationales are starting to shift. China’s quest to quickly become an influential F&L player is expected to increase competition for potential Chinese targets. In the remainder of this paper. They also should be sure they have the capabilities necessary to successfully execute the deals they strike—especially those related to identifying. 2. 4. To capitalize on available M&A opportunities. and planning and executing the integration of merging organizations. conducting due diligence. which Accenture has identified as particularly critical to M&A effectiveness. 4 . Specialist providers will become increasingly attractive targets for freight forwarders and contract logistic companies pursuing growth in verticals or complementary growth in value adding services. We have identified four key M&A trends that likely will unfold across the F&L industry in the next several years: 1. after a marked decrease in investment activity in the F&L industry1 in the wake of the global economic downturn. it is likely that not all of this growth will be organic. M&A activity is regaining momentum and mega-mergers such as UPS –TNT Express are returning to the stage. F&L companies need to confirm they have the right M&A strategy in place to guide their efforts—a strategy that is the result of close examination of how M&A can explicitly help the company achieve its broader strategic goals and in which situations M&A is the best option over organic and other inorganic initiatives. In fact. especially for those with favorable inland accessibility. we explore these M&A trends in more detail and provide some guidance on steps F&L companies can take to position themselves to capitalize on inorganic growth opportunities in the next several years. The aspiration to attain a strong position near rapidly growing markets is likely to fuel M&A activity in emerging markets.Executive Summary Following years of clear focus on cost reduction. Consolidation is likely to continue because the F&L market remains highly fragmented. Our empirical study shows that M&A activity in the past 10 years was strongly driven by regional consolidation movements by global carriers. screening and prioritizing targets. forwarders and 3PLs aimed at increasing market penetration.
with many of the key industry players having communicated doubledigit growth targets to the capital markets. companies typically have three routes available to them: joint ventures (JVs). can regain prominence. something that is difficult to achieve in today’s low-growth economic environments. market entry must be achieved by teaming up with a local partner.231 2004 378 2005 990 2006 402 2007 412 2008 550 2009 1. and the appropriateness of each varies by context. Figure 1. For an increasing number of F&L companies. They represent a valid growth option. Deal activity declined significantly in the wake of the global financial crisis and subsequent recession. 5 . executives at F&L companies increasingly view inorganic growth as critical part of the solution. F&L companies must develop a compelling and credible value-creation agenda that will convince investor communities they have the right vision and plan for growth. Third. where loose and potentially unstable JVs and alliances might not deliver the degree of exposure and expertise transfer envisioned. Each has its advantages and disadvantages. Deal count and average deal size 76 69 68 55 38 25 27 42 30 13 56 2002 Ø Deal Size ($m) 428 2003 1. The announcement of the US $6. India.8 billion acquisition of TNT Express by UPS in March 2012 provides evidence that megadeals. strategic alliances. In fact. M&A activity in the F&L industry.Why M&A—and Why Now? After years of clear focus on cost reduction and performance improvement F&L companies are again actively pursuing their growth agendas and are evaluating inorganic growth options to achieve their financial targets. In the current economic climate. Thus. F&L companies as a group have set aggressive financial goals for top-line growth. but still remained above 2003 levels. The challenge is exacerbated by growing cost pressures from competition and increasingly demanding customers. At the same time. First. prohibits foreign ownership of most businesses. Also. Recognizing organic growth might not be sufficient to achieve their goals and honor their commitments made to capital markets. Second. Yet the economic climate remains challenging and the environment for organic growth is competitive. there are ample vertical industry opportunities. some major F&L companies have accumulated significant cash in the past four years that they could readily deploy to purchase new growth-generating assets. M&A is the most relevant and increasingly attractive option for F&L companies to pursue inorganic growth for a number of reasons. for instance. In pursuing inorganic growth. ongoing deregulation in emerging growth markets has made it easier to execute M&A deals in those markets.725 2010 763 2011 2012 Q1 380 870 Thus. reaching a peak in 2008. especially for cash-rich players looking to use M&A to grow or diversify to achieve a competitive edge. Markedly reduced deal values in 2011 underpinned F&L acquirers’ cautiousness in response to an overall cloudy macroeconomic climate at the time. JVs and alliances with local companies can be the sole route of entry into promising but highly regulated emerging markets. M&A in the F&L industry2 grew steadily at the beginning of the new millennium. As shown in Figure 1. M&A are a critical part of the solution. especially in times of higher economic uncertainty. F&L companies seek to improve their margins. thus providing opportunities for further consolidation. in fact. which closely tracks the overall economic growth cycle. JV and alliance arrangements usually trade full ownership and control for lower risk and capital requirements. Fourth. and M&A. the global F&L market remains highly fragmented. is regaining momentum with the improved global economy. but those sentiments have given way to a more positive outlook in 2012.
t/o 2009-Q1 2012 Ø Deal Size Min.849 9.077 8. Deal Size Total Invest 2002-Q1 2012 .554 161 161 161 161 161 - Central & South America 195 195 195 195 1. historical M&A activity was largely driven by consolidation movements. M&A activity has shifted away from Europe and the US toward emerging growth markets in Asia Pacific and South America. Deal Size Max. Nearly eight in 10 deals executed in the F&L industry in 2011 and through the first quarter of 2012 have been domestic3 in nature (driven largely by increased M&A activity in the Asia Pacific region and Asian acquirers’ preference for targets within domestic markets).425 Middle East / Africa 856 587 428 269 587 - Europe 62. Deal Size North America 6. Deal Size Max. We also found a growing tendency to “go local” in M&A transactions in recent years. Figure 2. Deal Size Total Invest 2002-Q1 2012 .104 * Includes the nearly $7 billion UPS-TNT deal 6 .787 709 156 3. Geographic Scope: Asian M&A activity and domestic deal making on the rise It is no secret that the emerging markets of Asia and South America have replaced the more developed economies of Western Europe and North America as targets for many companies’ growth initiatives.338 234 6.t/o 2009-Q1 2012 Ø Deal Size Min.256 128 314 128 662 1.245 32. Second.628 150 150 150 150 150 North America Acquirer Nations Asia Pacific Central & South America Total Invest 2002-Q1 2012 .737 604 101 9. Deal Size Max.245 507 583 107 1.860 1. F&L companies largely have eschewed international expansion in recent years.188 985 297 100 719 5. However.591 310 101 839 5. in terms of acquisition rationale.221 1. outbound M&A investments 2002-Q1 2012 (in US$ millions)4 Target Nation Europe Total Invest 2002-Q1 2012 .t/o 2009-Q1 2012 Ø Deal Size Min.377* 1.673 4. when a slight majority of all deals done in the industry were cross-border transactions.153 384 150 850 - Asia Pacific 1. This is a sharp increase from 2007 and 2008. Middle East/Africa 1.542 129 385 124 1. Deal Size Max.619 378 101 4.832 1. more than 56 percent of M&A deals are targeted at companies from these regions. M&A activity in Asia Pacific and South America hit a record high in 2010 on both the buying and the selling side. in terms of geographical scope. Today.M&A Market Observations Our analysis of F&L M&A transactions larger than $100 million in the past 10 years2 has revealed some interesting changes in M&A deal making. All rights reserved.t/o 2009-Q1 2012 Ø Deal Size Min. Deal Size Total Invest 2002-Q1 2012 . We are seeing some indications that acquisition rationales in some sub-segments are starting to move beyond consolidation.368 7. Deal Size © 2012 Accenture.175 235 100 514 646 215 100 400 29. Inbound vs.422 701 103 6. First.300 828 305 2.951 3.804 11.625 1. unlike in other industries where emerging-market deals are often initiated by companies from mature markets. The F&L industry is no exception.t/o 2009-Q1 2012 Ø Deal Size Min. Deal Size Max.
All rights reserved. Figure 3. © 2012 Accenture. All rights reserved. as the UPS-TNT deal illustrates). in turn. We found ocean carriers and road carriers tended to focus more on consolidating within their sub-segments. Europe and Africa / Middle East. in direct contrast to their US and European counterparts. In breaking down this data by time frames. Analyzing F&L M&A activity on a regional level shows an even clearer picture: The past ten years were all about regional consolidation (Figure 2). which are going “asset heavy” in Asia) and geographic expansion (in particular. Recently. They also have adopted a more conservative M&A approach when investing in Asia Pacific. Overall M&A investment volume by Asian Pacific acquirers was considerably lower than by US acquirers (US$ 33 billion vs. followed by those in Asia Pacific.On average across all geographies during that 10-year span. In terms of average deal size.5 Air Ocean Rail Road Mail Express Freight Forwarding Contract Logistics 12% 29% 22% 35% Intra Sub-segment © 2012 Accenture. however. As shown in Figure 4. have executed some larger acquisitions in equally mature markets as well. However. while other segments— especially freight forwarding (FF) and contract logistics (CL)—tended to further blur the boundaries between the segments and use M&A to acquire capabilities that enable them to offer end-to-end supply chain solutions (Figure 3). M&A rationales by industry sub-segment4. following years of strong consolidation focus before the financial crisis and recession. In terms of overall M&A investment. we found that. American F&L companies have been most active in investing abroad. they made a much a higher proportion of their total M&A investment within the past three years (34 percent vs. American and European acquirers. 7 . US$ 44 billion). 25 percent vs. 62 percent of M&A deals in the F&L industry involved an acquirer and target from the same country. M&A deal rationales by industry sub-segment and over time6 High Diversication Rail Market Penetration Geographic Proximity FF Air Air Mail CL FF Rail Mail Road CL Ocean Road Express Ocean Express Low Low 2002-2007 Diversication in New Markets Geographic Expansion High Business Similarity 2008-2011 Deal Rationale: Consolidation and beyond From a sub-segment perspective. we found differing rationales for M&A—both those transactions already executed and those projected for the future. while 38 percent were crosscountry deals. which are further emphasizing expanding their global scale. it appears several sub-segments are making a play for diversification (especially freight forwarders. express carriers. European F&L acquirers were by far the most active deal makers (US$ 72 billion). there are indications that acquisition rationales in some subsegments are starting to shift. Acquirers from all different regions made the bulk of M&A investments acquiring targets from their home region. 32% 56% 37% 52% 47% 18% 22% 22% Intra Segment 5% 16% 14% 64% 40% 42% 10% 23% 35% 30% 14% Intra Industry 24% 18% 18% 26% 30% Cross Industry 47 133 19 21 17 17 23 37 100% Figure 4. M&A activities in most segments between 2002 and 2007 were strongly focused on either consolidation or on further penetrating existing markets. Asian Pacific acquirers tend to be more cautious and primarily look for targets in the US$ 300 million range. 19 percent).
In particular. we expect to see pronounced consolidation moves among asset owners in ocean freight. The aspiration to attain a strong position near rapidly growing markets is likely to fuel M&A activity in emerging markets. 8 . Thus. In freight forwarding and contract logistics. national consolidation opportunities in some segments are more constrained in mature markets. Considered together. which could result in more pronounced cross-border or cross-regional M&A activity. and the Middle East (especially the United Arab Emirates) valuable prospects for M&A deals. 1. while most of the focus is on large Asian economies. increasing consolidation seems likely both among asset-heavy and asset-light players. we present what we see are the four key M&A trends emerging in the F&L industry. and Vietnam). these trends paint a picture of an industry that is moving toward greater consolidation— particularly in the fast-growing emerging economies in Asia—as major players seek to add capabilities that enable them to offer a broader set of higher-margin services to an expanding global customer base. and rising domestic consumer demand will create a high cargo demand profile for top emerging markets for at least the forthcoming decade. when domestic deals dominated the landscape. due to existing overcapacity on developed trade lanes and poor returns for financial investors. as well as supplier migration toward those markets • Capitalize on massively promising growth prospects for contract logistics in these underpenetrated markets. Indonesia. despite the recent spate of M&A activity. Thus. it is critical to invest in the “right” trade lanes in terms of shipper and commodity mix and margins appropriate to the individual business. South America (including Chile and Mexico). continued manufacturing offshoring to “new” emerging countries. Consolidation is likely to continue because the F&L market remains highly fragmented. 2. Geographically speaking. good connectivity to global markets and relatively low barriers to market entry also make smaller emerging markets in Asia (such as Malaysia. we may well see a large number of horizontal acquisitions targeted at companies with capabilities in complementary industry verticals. Thailand. Ongoing industrialization of markets. However. While there are ample opportunities for F&L companies to strengthen their footprint in emerging markets. This would reverse the trend we have seen in the past few years. we expect to see particularly high M&A activity among freight forwarders and contract logistics providers from developed markets targeting big Asian consumer markets as they seek to: • Acquire knowledge of local customer requirements and a strong Asian platform • Boost their market share on Asian emerging-market trade lanes • Anticipate and take advantage of customer movements to shift production and sourcing decisionmaking power toward Asia. The F&L industry historically has been highly fragmented and remains so today.Where Does the Industry Go From Here? With the preceding historical analysis as a backdrop.
companies will need to create industry-specific solutions to win new business and cross-sell to existing clients. our analysis shows that only a small percentage of deals done in China since 2008 have been crossborder transactions (Figure 5). In fact. or to seamlessly manage reverse logistics and recalls for drug and aviation companies. passage of financial stimulus packages. UPS. Some evidence already exists that ocean carriers are considering diversifying into the oil and gas drilling business. thus further increasing competition and commoditizing the already low-margin forwarding business. To excel in this highly competitive industry. FedEx. Although China in 2005 opened up its F&L industry to wholly owned foreign enterprises. All rights reserved. high-tech and retail might offer similarly attractive opportunities. We believe freight forwarders and contract logistic companies will increasingly look for adequate specialist providers to move toward “end-to-end” supply chain solutions (by filling gaps in current supply chain coverage or by increasing the depth of value adding services for certain verticals). and as the need to develop comprehensive domestic networks becomes imperative.3. and growing investment in logistics infrastructure). 9 . As domestic policies and manufacturing companies shift the location of manufacturing bases to inland locales. Accenture increasingly views these capability acquisitions as a critical component to increase industry specificity of services and as a key driver of innovation in F&L business models. Specialist providers will become increasingly attractive targets for freight forwarders and contract logistics companies pursuing growth in verticals or complementary growth in valueadding services. domestic buyers will quickly grow larger and become more assertive deal makers. However. Figure 5. other industry verticals including automotive. we expect to see increasing competition for targets in areas with most favorable accessibility. it is not a given that movement will be driven mainly by foreign firms. a contract logistics company may decide to extend its capabilities to offer its hightech companies pick-up and repair services. However. or acquiring engineering services companies to offer additional solutions to oil and gas clients. domestic M&A deals in China since 2005 12 +32% 6 5 3 2 100% 2006 Domestic deals 100% 2007 2008 100% 3 100% 20% 2009 2010 80% 17% 2011 83% Cross-border deals © 2012 Accenture. The most obvious industry for this emerging M&A category is probably oil and gas. 4. A growing number of freight carriers and integrators is entering the freight forwarding and contract logistics market (including DHL. China’s quest to quickly become an influential F&L player is expected to increase competition for potential Chinese targets. That means foreign F&L companies will have to move even faster if they want to buy their way into the Chinese growth market. the country’s logistics industry is still highly fragmented and likely to move toward major consolidation and formation of large consortiums in next few years. or help its pharmaceutical company clients manage the complex certifications related to shipments of drug compounds. For instance. especially for those with favorable inland accessibility. Competition for remote targets is further fostered by governmental investments into logistics infrastructure development (such as railways. roads and highways). and especially to get access to the highermargin logistics business areas. Cross-border vs. and SCNF). But with the Chinese government currently actively supporting consolidation (as evidenced by the significant M&A involvement of state-owned companies. F&L players have begun looking for sources of diversified revenue growth through capability purchases in previously separate or adjacent industries.
the build-partner-buy analysis might conclude the company should use M&A to acquire the necessary assets. especially for target screening and evaluation. an organic option might turn out to be the preferred avenue for the company due to its economic and operational feasibility and lower invest requirements. would be extremely time consuming and costly and fraught with potential risk. Consider a hypothetical example of a pure air cargo company. .Developing the Right M&A Strategy Is Key Given the current and anticipated dynamics in the F&L industry and overall global economy. A thoughtful M&A strategy is critical for several reasons. Thus. and availability of appropriate cash. if the company was looking for a less-expensive solution. which products or services the company wants to offer. This involves a thorough evaluation of the different organic and inorganic deployment options that could help it close strategic gaps. which would like to expand into end-to-end logistics solutions—i. technology. Companies should map out “buildpartner-buy” options for each gap along the four directives. to 11 determine whether gaps are best closed by internal or external means. as well as internal factors including risk tolerance. such as an end-to-end logistics solution for one vertical on one or two trade lanes. External factors such as market environment and conditions. become more of an international player instead of a regional operator or extend its reach into industry verticals it already serves or add a new vertical to its mix. and investors on such critical M&A issues as stakeholder risk tolerance and expectations. Second. as well as respective advantages and disadvantages. and entry barriers. Consider the previously mentioned example: If the air cargo company decided that it wanted to evolve into a provider of end-to-end logistics solutions for global clients. all can greatly influence where. The confirmation of directives helps reconfirm where a company is today and where it wants to go in the future. Having answered the question on where to grow. a company must understand what is most important given its corporate strategy and where it wants to grow in the future—for instance. ability to execute and effect on balance sheet. it provides a formalized roadmap for a company’s inorganic growth agenda and helps provide stakeholders with a clear understanding of the M&A purpose.and long-term pursuit of overall corporate objectives and to fulfill their commitments to investors. these directives address the markets in which the company wants to operate in the future. Third. risk and certainty of outcome. an M&A strategy should not exist in a vacuum. This task is far from trivial given the high degree of complexity and interrelatedness of decisions potentially to be made. Importantly. the company then can understand and evaluate how it wants achieve this growth. even when limiting the scope to major trade lanes. and also could affect its geographical reach and target customer base.. In essence. The company could do this organically. A decision to pursue a direction on one of the strategic directives necessarily influences what a company would do on the other three and therefore requires unequivocal clarity of corporate strategic direction among executive decision makers. and which customers the company wants to serve. M&A strategy also is heavily influenced by a number of factors that might hinder or help its execution of the corporate strategy. it supports alignment among the management team. the competitive landscape. F&L companies should confirm they have a robust M&A strategy that articulates how and why they will approach M&A. expertise and other capabilities. in which geographies the company wants to operate. when and how companies execute deals. Conversely. pre-/defeeding and associated document management complementing pure air cargo transport. First. Doing so would change the company’s product offerings. it provides a framework for M&A deal execution. to evolve into a provider of end-to-end logistics solutions. however. Rather it should begin with an understanding of the key sources of strategic value and a confirmation of the principal directives in the overall corporate strategy. financial objectives. The most important decision criteria are required speed and investment. people and capabilities. regulatory requirements.e. board of directors. Such a strategy will help F&L companies target M&A deals that strongly contribute to their near. creating a global capability from scratch. offering full origin-todestination services: pick up and delivery. It requires a review of strategic needs and visions along the four dimensions covered by the directives and identification and evaluation of strategic gaps to current business.
Seasoned acquirers also focus on the areas that will create the most value. Jump-starting integration activities. Moving quickly to implement bold changes. Ensuring comprehensive. This approach includes screening criteria that are directly linked to M&A strategy to assess whether the deal will fill strategic gaps. A company should develop a detailed. In our extensive work with clients around the world. However.Building Robust M&A Capabilities Is Critical to Execution Once it has developed its M&A strategy. Merger integration While choosing the right acquisition targets and quickly identifying sources of value are critical. synergistic value and the likelihood of getting the deal done. a company can evaluate and prioritize candidates based on their strategic rationale. they emphasize the customer throughout the integration process. In Accenture’s experience. risk management oversight and management reporting to keep executive teams up to date on progress while allowing the line organization to continue to focus on the day-to-day business. not just integration. effectively integrating these acquisitions into the enterprise may be the single most important M&A success factor. and planning for day one of the merger and beyond. channels and other aspects of the business. and then tailoring the integration and communications programs to mitigate and address key differences and potential clashes. and are particularly mindful of retaining key customers. These firms are able to realize the expected synergies from their transactions and accompanying increases in shareholder value. Providing strong governance and tight process controls. as well as frameworks to identify and quantify the expected value from an acquisition or merger. frequent and consistent communications. thorough due diligence and effective merger integration. Accenture has identified three main drivers of M&A success: value-driven target screening. Successful acquirers often begin work well before deal announcement. Additionally. because time and capacity for change are not unlimited. Maximizing synergy opportunities. but also on providing greater insights that enable it to proceed confidently with subsequent integration activities. some F&L companies truly understand that M&A does not create value per se. The preceding M&A capabilities are especially critical in the F&L industry. integrated communications plan for each key stakeholder group and implement it immediately after the merger announcement. a company should confirm it has the right capabilities in place to effectively execute the strategy. it should focus on an 80 percent level of certainty and comfort in planning and then drive quickly for 100 percent execution. as the window for such change typically is only 18 to 24 months. but rather. structuring the integration program around those key value drivers and ensuring each receives adequate focus and resources. Accenture has 12 found several factors are key to merger integration success. that value is generated by how well thought-out deals are and how well they are executed and integrated. Target screening Accenture has found that a value-driven rather than purely financial approach for identifying and screening acquisition targets or merger partners delivers the best results. Using such an approach. establishing integration teams with welldefined charters and scopes. Those that fail to execute and integrate deals will end up with significant cost and headcount redundancies and acquisitions that do not help them fulfill their obligations to investors. one that focuses not only on validating acquisition assumptions. Focusing on value creation. Savvy acquirers gain an understanding of any potential cultural issues by developing blueprints of the merging organizations. Due diligence A key activity in any M&A deal is the due diligence. portfolio. The most successful mergers are characterized by a strong. . preparing their integration program structure. A focused yet thorough due diligence is vital in helping companies understand what they are buying—and in creating the right strategies to obtain the desired value from the deal. A company should follow a holistic approach to strategic and operational due diligence. Because mergers create the expectation of change among employees. A company should capitalize fully on synergy opportunities by tying all potential synergies to specific execution plans. management teams can be bolder about the type and size of changes they make to operating models. But they must work fast. Addressing potential cultural issues early. centralized program management function that coordinates decentralized teams and provides common tools and processes. The approach should enable the company to identify and estimate the impact of synergies as well as uncover potential destroyers of synergies and other risks.
All of these actions are potentially viable. as well as the capabilities necessary to execute M&A deals in a way that minimizes risk and maximizes speed and returns. That is why we expect M&A to become an increasingly important component of F&L companies’ growth agenda. choose to serve a new customer base. expand into a fast-growing emerging market or evolve from a air carrier to an end-to-end supply chain solution provider would be too time consuming. organically making these moves would be impractical. with their oftencomplicated relationships and issues relating to control. 13 . Without both of these elements. decide to augment their product or service portfolio. being left behind as more able competitors make their moves. though. a F&L company is at risk of. The key to success in this endeavor is having a robust M&A strategy that clearly articulates how M&A supports the company’s overall corporate strategy. customer segment or geography.Conclusion With growth on the executive agenda at most companies around the world. technology. In many cases. They could move into new markets or segments. With sufficient cash on hand. at best. F&L companies face a considerable challenge: identifying how and where to capture growth to satisfy investors’ expectations. JVs and alliances. Furthermore. or expand into new geographies. expertise and other capabilities to. F&L companies are in a favorable position to strategically acquire what they need to quickly build a profitable business in a new market. and could help F&L companies gain access to new revenuegenerating “white spaces” that would complement their existing core markets and offerings. for instance. not fully capitalizing on the growth opportunities before it and. are no longer the sole route into core emerging markets due to the willingness of governments in those countries to increasingly accept foreign ownership of local companies. at worst. Building the necessary assets. costly and risky for the vast majority of F&L companies.
5) Intra sub-segment deals are deals in which acquirer and target operate within the same sub-segment. e. MEDIUM = intra industry deal. 2012. Geographic proximity measures the geographic proximity between acquirer and target. LOW = Cross industry deal. Data was retrieved December 21.HIGH = intra segment deal. 6 )Business similarity measures how similar the target’s and the acquirer’s businesses are. it contains the segments freight transportation (air. Intra industry deals are deals in which acquirer and target are both F&L companies. exchange offer and open-market repurchases are excluded. 2012 (Q1). Europe. and March 31. HIGH= intra sub-segment deal. Equity carve-outs.g. freight forwarder acquires trucking company. To derive this F&L-focused M&A dataset. Intra segment deals are deals in which acquirer and target operate within the same segment.g. 2) Our analysis is based on Thomson Reuters M&A data.g. rail and road). we have created a subsample by manually categorizing all acquirers and targets into F&L segments based on case-by-case analysis of companies’ profiles. In cases where companies are active in more than one segment. Deal value excluding net debt of target.g. HIGH = Domestic deal. If you require advice or further details on any matters referred to. Cross-country deals are deals in which acquirer and target are located in different countries. All values are arithmetic means. MEDIUM = deal in which acquirer and target are located in the same geographical region. the one with the highest proportionate revenue share. 14 . freight: ocean carrier acquires rail cargo carrier. The dataset includes all transactions greater than US $100 million.e. is decisive. This document is produced by consultants at Accenture as general guidance. please contact your Accenture representative. LOW = deal in which acquirer and target are located in different geographical regions. e. i. and freight forwarding and contract logistics. 3) Domestic deals are deals in which acquirer and target are located in the same country. e. and April 16. According to Accenture’s definition. e. 2002. North American acquirer and European target. mail and express. ocean.g. 4) Analysis includes all deals in which the acquirer is an F&L company. It is not intended to provide specific advice on your circumstances.End Notes 1) The freight and logistics industry comprises firms engaged in the supply of services relating to the movement. the primary segment. storage and handling of freight. announced and completed between January 1. e. MEDIUM . 2011. freight forwarder acquirers another freight forwarder. Cross industry deals are deals in which the acquirer is a F&L company and the target is active in another industry.
Michael Sturm is an executive partner and leads Accenture’s management consulting business for Air.com The authors would like to thank Adriana Diener. Junghanns holds a diploma degree in international business management. Sarah Ali is a Munich-based senior consultant in Accenture’s Global M&A practice with several years of international consulting experience. During her career she has worked on several M&A. merger integration and business transformation.ali@accenture. joint venture and alliance engagements.dier@accenture. M&A. He holds a master’s degree in business administration. Freight & Logistics and Travel.com . Mr. In the past ten years. primarily around strategy and process execution.sturm@accenture. Sturm joined Accenture in 1996 and works with leading clients in travel and transportation. He holds a master’s degree in business administration and an executive master of business administration degree from Kellogg. Brooks Bentz. firstname.lastname@example.org Jörg Junghanns is a senior manager based in Germany and an executive member in Accenture’s Freight & Logistics core team.D. he has worked on international assignments with transportation and logistics companies. Rob Knigge. in finance. Her industry focus is freight & logistics. joerg. He is based in Munich. Mr. She holds a diploma degree in business administration as well as a Ph.com Dr. michael. Mr Dier joined Accenture in 1995 and works with leading clients particularly in the Resources industry with a focus on corporate strategy. Seb Hoyle and Kathrin Graser for their contributions to this article.About the Authors Mirko Dier is an executive partner and leads Accenture’s Global M&A practice. He is based in Munich. mirko.
The company generated net revenues of US$25. 31. with more than 249. Accenture collaborates with clients to help them become high-performance businesses and governments. its logo. . Combining unparalleled experience. and extensive research on the world’s most successful companies. comprehensive capabilities across all industries and business functions.About Accenture Accenture is a global management consulting. Copyright © 2012 Accenture All rights reserved.5 billion for the fiscal year ended Aug. technology services and outsourcing company. and High Performance Delivered are trademarks of Accenture. 2011. Accenture.accenture.com. Its home page is www.000 people serving clients in more than 120 countries.
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