American PetroLog Acquired by KAG Logistics

Industry: Freight Brokerage
Business Location: Lafayette, LA
Tenney Group Role: Advisor to Seller

KAG Logistics Announces Acquisition of American PetroLog

What were the sellers’ motivations in deciding to pursue an exit?

American PetroLog was founded by two T&L industry veterans with a shared vision to tailor multimodal 3PL solutions to the liquid bulk/petrochemical industry. After 7 years of launching, building a team, persevering through a global pandemic, and refining solutions to meet evolving needs of shippers and carriers in this space, the owners were ready to explore opportunities to find a partner to help the Company and a very talented team continue the growth trajectory.

What challenges were unique to the sellers as they entered the marketplace?

The Company has a unique operating model led by an elite team of logistics professionals, which has led to exponential growth and incredible profitability in the past several years.  Although these are positive attributes, the market must clearly understand the sustainability of the growth story relative to market conditions in order to reward above-market growth/profitability with above-market value/structure in a transaction.

How did Tenney Group maneuver around the challenges?

Tenney Group collaborated with Ownership and Management from the beginning to understand the Company’s unique value proposition and design a process integrated around revealing market participants that place a premium on the Company’s unique capabilities.

Key Takeaways for Other Business Owners:

Identify your unique value proposition and how to articulate it very clearly – how does your Company solve problems for shippers, carriers, etc. better than anyone else in your space? Entering a sale process with a clear answer to this question will significantly increase the likelihood of finding “best fit” buyers that will produce the best outcomes the market can make available for your business.

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