One of the key industries set for mergers and acquisitions (M&A) activity in an otherwise slow global market is Turkey's freight forwarding industry.
A freight forwarder (often just forwarder) is a third-party logistics provider. As a third-party (or non asset-based) provider a forwarder dispatches shipments via asset based carriers and books or otherwise arranges space for those shipments. Carrier types include waterborne vessels, airplanes, trucks or railroads. The difference between a forwarding company and a transportation company is thus the possession of owned assets, which a freight forwarder does not itself possess.
Globally the freight forwarding industry is huge and growing at a fast pace and in Turkey, it is ripe for consolidation. Freight forwarding in Turkey is a highly fragmented space with a large number of small players, numerous one-man operations and other small professional companies that on their own, have been operating decently until now, but are finding it harder and harder to compete in an industry that is becoming increasingly globalized.
"Clients are asking for more and more services from their freight providers," says an expert on the Turkish freight forwarding sector. "If freight forwarders want to be competitive, they need to tie up with others in order to be able to offer diversified services and reach the far corners of the world."
In Turkey, many freight forwarders only offer one kind of service and can service only a few clients. Freight forwarding is an easy space to get into and set up shop in Turkey, the expert says, but the only way that many of these small companies that have mushroomed in recent times will be able to survive and remain competitive is to look for large buyers to take them over.
For large players in the freight forwarding space, then, Turkey is the place to go. Bigger companies in the logistics and transportation industry are very active in M&A buying activity, especially when it concerns a freight forwarding company. However, a buyer also needs to get assurance that each purchase it makes adds value to the company, and the integration of a company that's selling out needs to be executed thoroughly until the last detail, in order to benefit from the strategic advantages the selling forwarding company is offering. The large number of specialized players in Turkey will ensure that any large buyer will able to enhance its business offerings to remain at the cutting edge of the continued globalization of this industry, and provide its customers in different parts of the world the kinds of services they are looking for.
Due to developments in the European market more and more company owners buy or sell a company in Turkey. Here we have selected some cross border deals. See more on Turkish cross border deals
Whenever someone wants to buy or sell a company in Turkey we are the preferred partner. Within our European network we work with native country specialists who know their country inside out. See more on m&a advisory Turkey
We assist with the buy as well as with the sell side of a company. Learn more about how we buy a company or how we sell a company
Corporate Finance in Europe has a good understanding of the requirements and strategies of most companies in the logistics and transportation industry and can help potential sellers with a success full sale of their logistics/transportation or forwarding company.
Corporate Finance in Europe is a European M&A firm that provides corporate finance services to European companies. Corporate Finance in Europe is mainly active in European cross border M&A transactions. Corporate Finance in Europe assists European business owners sell their company to international buyers to offer them the best deal possible. Thanks to our team's background we are able to find the most suitable acquirers in Europe as well as in the USA.
Govert Derks, Managing Director
Corporate Finance in Europe
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