What Drives Real Value in Logistics: An M&A and PE Perspective from BGSA's Nikhil Sathe

In this episode of the Industrial Insights podcast, Justin Smith interviews Nikhil Sathe from BGSA, discussing the current state of the supply chain and logistics industry. They explore the economic landscape, the impact of tariffs, the role of technology and AI, and the trends in mergers and acquisitions. Nikhil shares insights on navigating financial challenges, the importance of cash management, and the future outlook for the industry, emphasizing the need for realistic expectations in a changing market.

Key Takeaways

• Nikhil Sathe has over 35 years of experience in supply chain and logistics.
• The freight industry is currently experiencing a recession with significant challenges.
• Transportation technology and AI are the only sectors thriving in the current market.
• M&A activity is expected to rebound in 2026 despite current market conditions.
• Cash management is crucial for companies facing financial pressures.
• Identifying high-value customers is essential for profitability.
• AI is poised to revolutionize the logistics industry.
• Valuations in the market are adjusting to new economic realities.
• The impact of tariffs is creating uncertainty in supply chains.
• The logistics market is highly fragmented, presenting both challenges and opportunities.

Episode Resources

Connect with Nikhil Sathe

• linkedin.com/in/nikhilsathe
• https://bgstrategicadvisors.com/
• https://www.linkedin.com/company/bg-strategic-advisors/

Connect with Justin Smith

• https://smithcre.com/
• https://www.lee-associates.com/
• [e-mail]
• https://www.linkedin.com/in/justinbsmith