TRANSPORTATION and LOGISTICS
Whether moving people or goods, companies in the transportation and logistics industry face significant challenges, including withstanding intense competition, keeping pace with rapid technological developments, remaining relevant in an increasingly global market, and anticipating and adapting to regulatory changes. By air, sea, road, or rail, transportation and logistics companies serve virtually every other sector of the economy and are subject to macro trends as well as issues unique to each individual company. BVA professionals have extensive experience in the transportation and logistics industries, enabling us to provide our clients with insightful and efficient consulting regarding valuation, economic damages, and various corporate finance issues.
BVA has provided transaction advisory services and a fairness opinion regarding the formation of McDonald Transit’s ESOP, along with subsequent annual ESOP update valuations. McDonald Transit provides management, planning, logistics, and operation services for public bus, rail, and paratransit systems. It offers service development, service design, and maintenance advice for fixed-route, paratransit, national park shuttle, campus shuttle, and passenger rail services.
Based in Enid, Oklahoma, Groendyke is a tank-truck carrier providing transportation services and logistics solutions in the United States, Mexico, and Canada It serves chemical, petroleum, and grain product manufacturers through its 28 chemical and/or refined terminals. BVA has performed numerous valuations for transfer planning purposes
Allegations: Kia Motors alleged that its partners in a joint venture in Brazil, including Asia Motors do Brasil S/A, engaged in breach of contract, fraud, and other wrongful conduct.
Role: On behalf of Kia Motors, BVA served as consulting experts assisting Kia Motor’s counsel in tracing hundreds of millions of dollars through several years of historical financial records of the joint venture.
Results: An arbitral tribunal ruled unanimously to award Kia Motors over $200 million.
Jurisdiction: ICC Court of International Arbitration
BVA has performed several valuations for financial reporting purposes for Swift. Swift is a holding company for Swift Transportation Co., which operates one of the largest fleets of truckload carrier equipment in the U.S. Swift operates out of numerous terminals in the U.S. and Mexico, providing strong regional operations, an expanding intermodal operation, and various specialty and dedicated services to its customers.
Allegations: DHL announced plans to abandon US shipping operations, just weeks after agreeing to a contract with Worldwide Express. Worldwide Express and its franchisees had based its new pricing matrix on its agreement with DHL and sued for breach of contract.
Role: BVA compiled a database consisting of tens of millions of individual shipping transactions, prepared counterfactual price and profit matrices based on thousands of shipping route permutations, and computed historical and future lost profit damages.
Results: Damages analysis presented to the jury at trial. Jurors awarded Worldwide Express past and future lost profits.
Jurisdiction: Dallas County’s 192nd District Court