Transportation and Logistics Business Transitions: Private Equity’s Role

  • Logistics
  • 7/14/2025

Specialty logistics providers, wholesale distributors, and niche businesses like final mile companies are appealing to private equity.

2025 is a good time to consider business transitions for transportation and logistics companies, regardless of who ownership may consider as the stewards for the next generation of the enterprise.

As covered in a previous blog, the current freight recession is providing certain transportation verticals with a prime internal transition opportunity. Given valuations for most trucking companies are likely low, and with increased estate tax exemptions, owners can transition more than they could in the past.

While internal, generational transition may not be the logical next step for all logistics providers, there are other factors contributing to it being a good time to consider external transition.

The 2025 M&A and business transition outlook

Our private equity (PE) teams foresee 2025 as a prime year for mergers and acquisitions (M&A) opportunities. The foremost drivers of M&A in 2025 are financial buyers pursuing strategic growth and capability expansion opportunities among existing platforms.

We’ve witnessed growing deal activity. In 2023, CLA advised on 449 deals. In 2024, that number jumped to 700, and 2025 is tracking to show continued gains.

Despite some overall economic slowdown due to shifting policymaking and recently enacted tax changes, M&A activity doesn’t appear to be slowing in 2025.

Private equity trends in transportation and logistics

The catalyst of much of this M&A activity is private equity investment into the sector, which shows no signs of slowing. PE firms still have strong pools of dry powder they seek to deploy and they continue to favor investment in certain transportation and logistics companies.

Specialty logistics providers, wholesale distributors, and niche businesses such as final mile companies are especially appealing to private equity. In general, PE firms look to invest in low risk, high margin companies.

Why should transportation and logistics companies consider private equity investment?

Any business transition warrants tremendous consideration — including potential private equity investment. PE investment is not a fit for every company, but such an investment frequently injects much needed growth-capital into companies and can provide a good option for business owners seeking succession plans while not completely stepping away from the enterprise they’ve spent a lifetime helping to grow.

How CLA can help with private equity considerations in transportation, logistics

At CLA, we advise business owners on a wide variety of business and succession decisions, including whether to consider internal transition or PE investment, and regardless of which path you choose, key questions and considerations. Reach out today to see how our transportation, logistics, and private equity teams can help your company weigh options for its future.

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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