Gartner Research

M&A as a Growth Strategy Presents Opportunities and Risks for 3PL Industry Providers

Published: 25 November 2015

ID: G00293306

Analyst(s): David Gonzalez, Greg Aimi, James Lisica

Summary

The magnitude of merger and acquisition activity across the third-party logistics industry confirms a current preference for this growth strategy. This research helps 3PL executives, their boards and their investors assess the benefits and risks this growth strategy imposes.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Major 3PL customers are consolidating their 3PL portfolios and, subsequently, want their providers to offer an increasingly broad set of reliable services across an ever-expanding geographic landscape
  • Over the past 10 years, investors, such as private equity funds, have become increasingly interested in the logistics sector, fanning the flames of interest in the M&A strategy for growth among 3PL executives and their boards
  • To outpace average industry growth, 3PL executives often seek M&A to more dramatically increase revenue via rapid customer-base and service-capability expansion

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