Buying a freight forwarder is a critical project as it is a people’s business that consists of contacts and excellent customer service. A freight forwarding company is asset light so you normally pay mostly goodwill especially when a forwarding company is very successful and highly profitable. As a medium sized forwarding you have to grow to be able to compete against the larger players in the industry. Growing via acquisitions and hence buying forwarding companies in countries where you are not active yet can be a good strategy. However, due to the diversity of the industry you have to have a large network of contacts to be able to buy the right forwarding company.
Involve us in buying a freight forwarding business
Firstly, it is important to describe exactly what type of forwarding company you want to buy. We need to know which size, location and type of activity (air, sea, road or a combination) you are after. After this it is important to get in contact with the right targets. We can help you here as we have a large network of business owners that are open for a sale. It is important to check the human side and see if the there is a cultural fit between the two companies. Especially as the distance between the two companies and the cultural differences between forwarding people living in different countries can be large.
What matters most when buying a forwarding company is to make sure you are talking to a forwarding company that has the right profile and is suited for you. The plans of the business owner of a forwarding company are crucial as this person has, especially with smaller forwarders, a lot of direct contact with clients and is the face of the company. Further, we suggest to check the valuation expectations of a seller early on in the process as we see all kind of valuation demands. Mostly the demands of a business owner are above actual market valuations we see happening. You should definitely get legal and tax advice during the process of a forwarding business purchase as the contracts (SPA and or LOI) are a crucial part of the transaction and these should be well drafted.
The forwarding segment is a part of the transportation industry with special attention from the CFIE team. For buying a freight forwarder our scope goes outside of the European boundaries. We have contacts with several global forwarding business owners which are open for a sale. If you have serious plans for acquiring a company in transportation or logistics please visit the section transportation companies for sale. Maybe there are already companies for sale in our directory that fit your requirements. We can also make an anonymous buy side profile for you free of charge and you will be informed if suited opportunities come up.
The team of Corporate Finance in Europe has large experience in logistics and has a team on the ground to help with business sales and purchases in logistics, 3 and 4PL. Our people have decades of logistics experience themselves and are able to help with buying and selling logistics companies.
Feel free to contact us for information about buying a business in freight forwarding. We know your industry and speak your language. We know the business owners that are considering selling a business and the ones that are already actively on the market open for a sale. The advisors of CFIE are here to help you to get the deal done when purchasing a forwarding or logistics company.