Private Equity in Logistics Related Investments with PLG
Logistics Due Diligence For M&A
PLG Consulting brings extensive industry experience to private equity firms globally, offering operational and commercial due diligence and strategic guidance for buy and sell-side situations. Our unique value stems from a network of over 60 industry veterans, providing practical, real-world insights. We help PE clients understand financial and operational nuances, assembling the right team to offer unbiased advice, risk assessment, and mitigation strategies, ensuring effective, risk-mitigated, and market-savvy capital deployment in the industrial logistics sector.
Our private equity services include mergers and acquisition due diligence, assessment of core and adjacent markets, and business strategy development.
How We Help
Commercial & Operational Due Diligence
Market Entry
Business Strategy Optimization
Our Services
Commercial & Operational Due Diligence
We’ve conducted dozens of due diligence projects focused on logistics and supply chain aspects and targets for mergers and acquisitions (M & A). Our experience includes due diligence for transportation assets as well as operating businesses across all surface transportation modes and serving a wide range of industries. PLG brings one-of-a-kind specialized expertise to every due diligence engagement, allowing us to quickly engage and identify ‘red flag’ issues ahead of deeper dive reviews of operational and commercial factors. In addition, we pride ourselves on being able to not only identify risks and headwinds facing investment targets, but also laying out post-transaction risk mitigation and growth strategies to enable a successful close.
Commercial & Operational Due Diligence Project Experience
○ Operational Due Diligence: Evaluation of organization, processes, technology, and KPIs for all surface transportation modes, services, and assets.
○ Safety/Security Risk Analysis: HESS assessments.
○ Commercial Due Diligence: Competitor, market, pricing analyses, and growth strategy development.
○ Management Evaluation: Assessment and leveraging the PLG network for leadership talent post-transaction.
○ Valuation and Negotiation Support: Analysis and negotiations for logistics assets (trucks, railcars, marine equipment, terminals, rail and dock infrastructure).
○ Post-Transaction Strategies: Risk mitigation and growth planning.
Understand and Penetrate New Markets
PLG Consulting assesses market conditions and opportunities for investments, aiding PE firms in leveraging logistics for growth. Our services include market analysis, comprehensive logistics assessments (freight spend, assets, infrastructure, personnel, processes, technology), and various types of due diligence in mergers and acquisitions. We outline existing and future market opportunities, ensuring thorough evaluation and strategic advantage.
○ Market analysis and assessment outlining existing/future market opportunities
○ Comprehensive logistics assessments – spanning freight spend, assets, infrastructure, personnel, processes, technology, and other key elements of the supply chain
Business Strategy Optimization
PLG Consulting optimizes and architects business strategies pre- and post-transaction to drive operational performance, cost savings, and growth. Our practical strategies advance deals and provide a roadmap for investors and business owners. Some of PLG’s business strategy deliverables include:
Supply chain design, Distribution network optimization, Technology solutions for transportation, Warehouse and inventory management, Site selection, Plant design & engineering, Transportation & logistics services procurement, Comprehensive technical due diligence, ensuring thorough evaluation in mergers and acquisitions.
FAQs
Private equity firms should focus on financial health, operational efficiency, logistics network, supply chain reliability, technology infrastructure, regulatory compliance, market position, and management capabilities. Thorough assessment of these areas ensures an informed investment decision, identifying potential risks and growth opportunities in the logistics sector.
The types of due diligence in mergers and acquisitions include financial, operational, legal, commercial, environmental, and human resources. Each type contributes to a thorough evaluation by assessing the target company’s financial health, operational efficiency, legal compliance, market position, environmental impact, and workforce stability, ensuring informed decision-making.
Partner with PLG Consulting for impartial, objective advice that propels your deal forward and drives growth.
Project Examples
Capital partner helps client secure debt solution to expand their logistics business
A capital partner engaged PLG to validate a clients' debt solution, whose loan collateral – a rail terminal and storage facility - was a sound investment. PLG’s due diligence included site visits, operations assessment, contract reviews,...
World leading investment firm considers Canadian frac sand investment
When considering an investment to serve 3 Canadian shale plays, a leading investment firm turned to PLG for expert knowledge on competitive terminals and sand producers in the region. PLG calculated total delivered cost from a...
Leading middle market PE firm wins auction process for industrial services business
Client successfully pursued an investment at the nexus of transportation and chemicals, aided by PLG analysis of the target’s business plan and underlying chemical markets, including impact of trends in US energy and petrochemicals growth pricing, competitive positioning,...
Mitigating investment risk for one of the largest global infrastructure funds
PLG guided client's acquisition decision process on multiple rail assets in a major shale-drilling region. We ensured a complete understanding of the target's physical assets, operational and financial performance, and business plan and vetted the client's...
Private equity chemical logistics services business acquisition in Mexico
A world-renowned PE firm with over $150B under management leveraged PLG’s extensive knowledge of target’s customers, commodities handled, and operational SWOT to guide transaction negotiations. Due to the niche nature of the markets and services, PLG...
Private Equity Success: Evaluating a Logistics Service Provider for Strategic Investment
A leading private equity firm needed to evaluate a potential investment in a specialized logistics services provider that operates within chemical plants and oil refineries. Before bidding, the client needed to understand detailed aspects of the...
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