Shipping Industry, Long Asleep, is Awakening with M&A Acvitity

The shipping industry usually sails along quietly in the world of mergers and acquisitions is making some waves as of late. The shipping industry — not a very active participant in MA — is acting more acquisitive in recent months.

Pandemic Effects on Shipping Industry

Because of the economic slowdown, many corporate deals have been postponed, moved to virtual discussions, or scrapped altogether.

Those participating in shipping M&A are concentrating their efforts on organic growth and vessel sale and purchase (S&P), instead of corporate acquisitions of trading shipping industry businesses. In shipping, corporate transactions don’t make as many headlines as compared to S&P.

Recent Shipping M&A

Based the company and sector, the findings showed there appears to be clear demand for M&A activity in the shipping industry, even with the recent issues concerning finance availability:

shipping industry container ship

Container Shipping

shipping industry bulk carrier

Bulk Carriers

shipping industry crude carrier

Tankers in the Shipping Industry

Independent Ship Managers

Key Drivers in the Shipping Industry

More expertise and management reporting is going to be required after any of these expansive acquisitions. There will need to be reliance on experienced advisors with knowledge of the sector.

The key drivers of successful financial performance will be critical when executing an acquisition to achieve this objective.

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Ryan Carpenter serves as Attorney and Managing Director of Carpenter Wellington. Ryan advises clients across a broad set of corporate and commercial matters.

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Carpenter Wellington PLLC

Ryan Carpenter serves as Attorney and Managing Director of Carpenter Wellington. Ryan advises clients across a broad set of corporate and commercial matters.