TCP survey shows one in four carriers consider selling
Posted: August 1, 2014
NASHVILLE, Tenn. — The results from Transport Capital Partners (TCP) recent Business Expectations Survey of truckload carriers in the U.S. show continuing confidence in the year ahead, but one in four carriers are still considering leaving the industry over the next 18 months.
The quarterly survey from TCP – a firm specializing in transportation mergers and acquisitions, capital sourcing and advisory services – is compiled using the insights and opinions of executives across the U.S.
“TCP’s surveys over the last five quarters clearly show carriers have become more confident in rates and volumes, but in the short run a substantial number of carriers (one in eight) say they are considering leaving if tonnage does not increase in six months,” says Richard Mikes, a managing partner for TCP. “Over a quarter of carriers would be interested in selling over the next 18 months.”
“The survey shows that small carriers generally are less optimistic and more anxious to sell than their larger competitors (with over $25 million in revenue), with the total number of carriers saying they would be interested in selling up about 50 percent over last quarter,” adds Lana Batts, a managing partner for TCP.
In general, more carriers in the survey were interested in buying (37 percent) compared to selling (28 percent) and large carriers led the way with a two-to-one margin over smaller carriers.
Batts and Mikes both expressed that conditions are ripe for a flurry of acquisitions in the next 18 months.