This fireside chat recap is from FreightWaves’ Domestic Supply Chain Summit on Wednesday.
FIRESIDE CHAT TOPIC: M&A activity in 2022 and an outlook for ’23.
DETAILS: The plunge in spot rates this year didn’t put the brakes on mergers and acquisition activity. Spencer Tenney, president and CEO of Tenney Group, explains how larger players are rethinking their acquisition strategies.
KEY QUOTES FROM SPENCER TENNEY:
On how M&A activity did not slow down this past year: “It’s almost like all of the challenges crystallized … and many folks said, ‘Hey, acquisitions is the only option that we have to offset some of these rising expenses.’ So I think that’s why you saw new entrants into this space that have never even gotten into growth through acquisition at all.”
On younger generations taking over businesses: “We are in the middle of the greatest transfer of wealth in the history of humankind. And that’s not hyperbole. Demographics are going to drive a lot of this activity, and I think the industry-specific factors are going to compound that activity just based on the fact that in a low-margin industry, you have to increase capabilities in whatever you can. There are only so many pennies you can squeeze out of a dollar.”
On what asset-light companies are looking for: “Very specific niche expertise is going to be a huge characteristic for 2023. … A good profile for this was the deal we did with Kenan Advantage Group and their first foray into brokerage space. What did they want? They wanted a proven expert, which was American PetroLog. This is an excellent example and predictive of what we will see from more folks.”