Deal activity in the transportation and logistics sector is looking up following a lackluster 2025 — a year marred by rapidly changing trade policy and a prolonged freight recession. Tenney Group, an M&A advisory firm focused on the sector, sees deal flow spiking by year end.
“M&A activity is gaining momentum as market conditions continue to improve,” the firm’s 2026 outlook report said. “We expect a dramatic increase in activity in Q4 2026, extending into 2027 and beyond.”
Global deal volume across the space has been in a downward trend, falling from 1,797 transactions in 2021 to 1,150 last year. The post-pandemic downturn was exacerbated by a trade war last year, making underwriting revenue and margins difficult, the report said. It also noted, “several quality companies ran out of time and filed bankruptcy before a deal could be finalized.”
“Still, many resilient and creative companies used M&A to enhance their capabilities, and, in some cases, take chips off the table,” said Spencer Tenney, CEO of Tenney Group.
He noted specialization was the key theme last year as buyers favored companies with “recurring demand, pricing power, and defensible service models.” Services like healthcare logistics, dedicated transportation and reverse logistics continued to be preferred by buyers.
Large carrier M&A was nearly nonexistent in 2025. But several large deals have already occurred in the first couple weeks of the new year.
- Avkha Equity Holdings acquired Minnesota-based carrier Dart Transit.
- Arkansas-based carrier USA Truck was acquired by a group of its current and former leaders from freight forwarder DSV.
- Canadian-based carrier Titanium Transportation Group entered an agreement to be taken private.
- Echo Global Logistics acquired ITS Logistics, creating a $5.4 billion 3PL platform.
Tenney Group’s 2026 outlook said companies built to navigate trade volatility will garner higher valuations. It specifically pointed to specialized freight brokerages with managed transportation offerings as winners, as well as providers that have “established customer relationships” and “resilient operating models.”
Tenney Group expects consolidation to accelerate across the supply chain technology sector as buyers pursue scale and interoperability versus fragmented, overlapping solutions. It also favors cross-border logistics firms with scale that can solve regulatory hurdles and address operational risk.
However, it said some segments are likely to be left behind, including pure spot truckload brokers, undifferentiated brokerages and standalone freight tech platforms without proprietary datasets.
“As we forge ahead and co-design the future of supply chain together, the possibilities are limitless,” Tenney said. “Navigating these opportunities requires clarity, preparation, and a willingness to stay educated and agile.”
