Economic and global uncertainty drove a sharp decline in deal volumes in the logistics and supply chain management sector in 2025, following the record highs of 2024.
Latest research from accountancy and business advisory firm BDO LLP revealed a muted year of dealmaking, with 69 deals completed in the logistics sector during 2025 - a 26% decrease on the 93 deals completed in 2024.
Transaction volumes in Q4 2025 also fell compared to the same period in the previous year, dropping marginally from 19 deals in Q4 2024 to 16 in the final quarter of last year.
The report attributed the sluggish deal activity to economic and geopolitical uncertainty, with business costs remaining high and confidence remaining low.
Total disclosed deal value for Q4 2025 also dipped compared to previous quarters, with the year’s total deal value also trailing 2024 figures, which were driven by stand-out big ticket deals.
However, despite the fall in M&A activity in 2025, there remains a strong appetite for deals, particularly from international investors and institutional funds.
BDO LLP’s latest UK M&A Update Q4 2025, Logistics and Supply Chain Management’ report revealed that in the final quarter of the year, more than half of transactions (56%) were trade deals, with 44% cross-border in nature.
Notable transactions were Dutch QLS Group BV’s acquisition of fulfilment specialist James & James Fulfilment. The deal provided an exit for private equity firm LDC, which saw revenues grow by 415% in five years.
Also of note is Stott Nielsen’s acquisition of Suttons International Holdings, with the deal adding 11,000 ISO tank containers to its fleet, further extending its leading position in the liquid logistics market.
The report also showed that technology remains a key driver in the sector, as institutional investors seek high growth and businesses look to gain a competitive advantage by focussing on AI and automation.
More than a third of deals in Q4 (38%) were tech-related. Deals included Whiterock’s Growth Capital minority investment in MANTIS, a growing AI-driven fleet safety and risk intelligence company.
Jason Whitworth, BDO LLP M&A partner, commented: “As we accelerate into 2026 there is a sense of stabilising confidence and of M&A pipelines starting to build. Falling interest rates, inflation easing, valuations recovering and more stable capital markets would support increased activity.
“Yet, uncertainty remains a defining feature with economic-policy movements, geopolitical tensions, and unexpected political developments continuing to impact confidence, particularly when looking to forecast future earnings.”
According to BDO’s Q4 M&A update, more than two-fifths of deals (44%) had a direct PE or VC investment, rising to 57% when PE-backed trade buyers are included.
Whitworth added: “In the coming year, we are anticipating increased activity driven by technological advancements, e-commerce growth, sustainability initiatives, globalisation, and the need for consolidation.
“Companies that strategically navigate these trends and challenges will be well-positioned to enhance their competitive edge and drive growth in an increasingly complex and demanding market.
“Meanwhile, private equity and strategic buyers continue to hold significant capital ready to deploy in support of those quality businesses.”
