The Logistics of Logistics What's Driving the 3PL Industry Consolidation with Spencer Tenney
Joe Lynch and Spencer Tenney discuss what's driving the 3PL industry consolidation. Spencer and his team at Tenney Group are mergers and acquisitions advisors who work with business owners in the 3PL, trucking, and bus industry.
About Spencer TenneySpencer Tenney serves as President & CEO of Tenney Group, where he oversees the firm's day-to-day effectiveness and long-term vision. Spencer is a graduate of the University of Texas at Austin and holds the designation of Certified Merger & Acquisition Advisor through AM&AA. Prior to Tenney Group, Spencer worked as a Director at Merritt Hawkins, a healthcare recruiting firm in Dallas. He also owned a music publishing company. Spencer and his wife, Lauren, reside outside of Nashville in Franklin, Tennessee and have been married for 13 years. He has three amazing kids – 9,6, & 3. He enjoys writing country music, reading presidential biographies, and F3 (Fitness, Fellowship, Faith). He currently serves on the board of Franktown Open Hearts, a faith-based organization dedicated to equipping inner-city kids to free themselves from generational poverty.
About Tenney GroupTenney Group are mergers and acquisitions advisors who work with business owners in the 3PL, trucking, and bus industry. These business owners are hardworking individuals or teams who have created and lead companies that are the backbone of America. Unfortunately, pitfalls unique to the transportation industry can threaten an owner's ability to sell their business for what they deserve or even threaten their ability to sell at all. Luckily, Tenney Group has developed an industry specialized process that enables business owners to navigate these pitfalls and maximize their ability to get a deal done. Ultimately, this allows owners to impact their family, employees, and community in profound ways while also giving them peace of mind that they made the best decision. The Tenney Group's unique expertise helps transportation business owners build and protect business value, grow through acquisitions, and optimize the sale of their businesses. The Tenney Group was established in 1973 and has completed over 200 transportation deals.
Key Takeaways: What's Driving the 3PL Industry Consolidation- In the interview, Spencer explains what's driving the 3PL industry consolidation.
- The following factors are driving the 3PL industry consolidation:
- Inexpensive investment dollars are available for funding M&A activity.
- Large logistics companies acquire businesses for the following reasons:
- Grow their revenues.
- Enter new markets.
- Gain access to talent.
- Diversify their service offering.
- Diversify their service area.
- Owners of logistics and transportation companies are interested in selling their companies for the following reasons:
- Life changes like retirement, divorce, illness, desire to do something else.
- Unwilling or unable to invest in the business.
- Unwilling or unwilling to invest in technology.
- Diversify their investments.