Europe tops the chart for supply chain and logistics deal activity
Europe led the way for deal volumes within the logistics sector in 2017, according to accountancy and business advisory firm BDO’s Logistics and Supply Chain Management M&A Review.
Deal volumes in Europe (including the UK and Ireland) represented 54% of global M&A activity for the year, with 140 completed sales, a level consistent with the previous year.
After a bumper year in 2016 when the total value of deals peaked at £27.2bn globally, activity in terms of value and volume fell in 2017 to £16.9bn disclosed deal values. Average deal multiples fell marginally in 2017, to 13.6x from 13.8x in 2016, but show an upward quarterly trend in 2018.
In particular, supply chain technology is generating significant interest from private equity investors, demonstrated by a growth in the proportion of transactions involving direct investment by financial institutions from 13% in 2015 to 17% in Q1 2018.
Jason Whitworth, M&A partner at BDO, explained: “2016 benefitted from a number of high-value deals, with three transactions above £3bn.
“Lower activity in 2017 may be driven by elements of uncertainty across a number of significant global markets, but large organisations continue to search for profit enhancement through consolidation and smaller niche providers are looking to take advantage of the ever-changing landscape.
“Market disrupters and new market entrants are in a race for technology and automation, driving new business models to deliver against ever increasing customer expectations. This change is propelling investment and transactional activity, as businesses seek to develop innovative and scalable platforms, delivering efficiencies through scale and consolidation.”
Meanwhile, the UK remained a hugely active part of the global logistics market, representing 11% of sales and 10% of acquisitions by volume in 2017. Investment from overseas also remained healthy, with 21% of buyers from overseas in 2017 and the average deal value increasing to £82m.
Whitworth continued: “Despite the uncertainty of Brexit, the UK has seen increased investment appetite and activity from financial institutions as they recognise an opportunity to deliver growth and value. High-growth, entrepreneurially-spirited, mid-sized businesses must continue to champion new technologies and innovation to drive sustainability across the industry.”
New speakers announced for Procurement & Supply Chain Live
Two leading executives in supply chain transformation have been confirmed for this year's Procurement & Supply Chain Live event.
Procurement & Supply Chain Live is the perfect opportunity to hear from prominent executives at the world’s leading procurement and supply chain businesses. The event will be streamed live from Tobacco Dock, London via the leading networking platform Brella.
The three-day show, running 28-30 September 2021, is an essential deep dive into the industry, with influential speakers sharing insights and strategies from their organisations, group roundtable discussions, and fireside chats.
We take a look at the latest additions to the already amazing lineup of speakers announced so far, and what they will bring to the flagship event.
VP Global Supply Chain at Macmillan Education Ltd
Shaun Plunkett has over 30 years of supply chain leadership experience in FMCG, entertainment and media sectors, supporting multi-billion euro businesses including Universal Music, EMI, Sony Music, Harper Collins and Associated British Foods. He has a track record of successfully delivering transformational change coupled with award winning operating models and developing and coaching global teams. Plunkett says that challenging the status quo is at the heart of what drives him on a daily basis - and encouraging others to continuously push the boundaries.
Read more about Plunkett’s involvement in Macmillan Education’s supply chain transformation HERE
Digital Transformation Lead, Oracle UK and Board Member, CILT at Macmillan Education Ltd
Vikram Singla is digital transformation director at Oracle, UK. He helps supply chain and finance business leaders leverage technology to deliver meaningful business outcomes for their organisations. He also serves on the board if CILT (Chartered Institute of Logistics and Transport) – UK and is an Honorary Visiting Fellow at Anglian Ruskin University. Singla has more than 25 years’ experience in the technology sector, and in global supply chain transformation, including deploying business transformation programmes for Fortune 500 firms. In his spare time, Singla is a passionate brand ambassador for Cancer Research.
Plunkett and Singla join a growing line-up of speakers, including: Sheri R. Hinish, IBM; Robert Copeland, G4S; Daniel Weise, BCG; Mark Bromley, Mastercard; David Loseby, Rolls Royce; and Ninian Wilson, Vodafone Procurement Company.