Burlington Northern Berkshire Hathaway Growth

On the other hand, the increasing outsourcing level of companies in relation to their logistics activities is a key growth driver for the contract logistics. Worldwide, so far only about 25 per cent of logistics activities to external providers are awarded, where it is expected that this value will further increase in the coming years. III. M & A in the logistics market fig. 3: transactions in the logistics market (without passenger transport, cargo to the maritime, infrastructure, distributors) source: CapitalIQ Note: 2009 adjusted for approximately 24 billion acquisition of Burlington Northern Berkshire Hathaway of the global transport and logistics market has between 2004 and 2008 tremendous growth by almost 50% to US$ 3.7 trill.

learn. In the course of this dynamic development, M & A has always played a major role. The volume of the logistics transactions (> 20m) enterprise value was in the ten years in the cutting at about 12 billion or 70 transactions p.a.. However the crisis years 2000/01 and 2008/09 on the M & A have impacted volumes, and the cumulative transaction volume respectively decreased by approximately 50%. At the beginning of the crisis and the uncertainty in relation to the margins and cash flow development have activity in 2008 greatly reduced many logistics companies their M & A and management resources focused on internal measures such as cost reductions and operational improvements. Further growth was primarily organic aspired instead of pushing potentially unsafe external growth (assessment and integration risks).

The M & A focus was placed accordingly more on selling problematic (part -) businesses or subsidiaries. At the same time the activity in the private equity has declined also significantly area due to the limited funding opportunities on the buy-side and the general decline in valuation on the sell-side. The partial cyclic logistics market and the related The funding opportunities especially for financial investors have more difficult planning uncertainty at this time.