Five factors that will impact fleet M&A in 2015

Jan. 6, 2015
Fleet Owner's IdeaXchange experts share their predictions for 2015.

The economy is booming. Manufacturing and retail are both experiencing record growth as both business and consumers return to the marketplace.

This rapid growth will fuel merger and acquisition activity in the trucking industry during 2015.

Here are the five factors that will impact fleet M&A in 2015:

Consolidations – The rapid growth in trucking provides a great opportunity for small-to-medium sized fleets to merge to increase efficiencies, expand market share and fend off larger competitors. This will increase fleet values.

Driver RetentionThe driver shortage will positively impact the value of fleets with well-developed driver retention programs. If you have a solid team of drivers, your fleet will be worth more in 2015.

TechnologyFleets that stay ahead of the technology curve will increase in value as they more effectively manage overall logistics and reduce costs.

Fuel Cost Fuel cost is the single most important factor that impacts fleet operations. As the price of fuel drops, operating costs should also drop, and profits should rise, making a well-managed fleet an attractive M&A target.

Regulations Fleets that monitor and effectively manage ever-changing regulatory costs are poised for future success and that is always attractive to investors.

Investors are sitting on more than $1 trillion they need to put to work.  They are constantly looking for fleets and other businesses in attractive sectors, with established success records, and long-term plans for growth.

As the economy continues to expand, successful fleet operations will become M&A targets.

Owners should recognize the key factors that will drive fleet value and ensure they are focused on long-term growth that will enhance their fleet’s value.

About the Author

John Sloan | Vice Chairman

John Sloan is the Vice Chairman of Allegiance Capital, a middle-market investment bank that works with business owners to help them sell or raise capital. 

John has more than three decades of C-level experience in investment banking and private equity.  He has personally executed transactions with fleet owners and understands the unique needs of the trucking industry. 

During his career, John has raised more than $1 billion in debt and equity.  He is an expert in all aspects of investment banking and has evaluated and negotiated the acquisition of more than 30 companies in: energy, construction, retail, telecom, environmental, logistics and manufacturing, with an aggregate value in excess of $7 billion.

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