There continues to be a high level of investment interest within Freight Audit and Payment (FAP) companies - both buying them up but also in selling them off. A feature of the last few years has been increased interest in the sector by private equity and venture capital company, with some companies having been bought and sold more than once in a short space of time.
"There is a strange dynamic in the FAP industry at the moment...On one hand companies are looking to move into freight auditing but just as many are looking to get out..." - CustomsPlus managing partner and FAP Industry SME, Dominic McGough. Private equity firm, Astira Capital Partners acquired ConData from NextGen Growth Partners and the Firmament Group july 23rd. Condata was first founded in 1956, based in Oak Brook, IL. Condata provides freight post audit and recovery services for customs globally. Offering US domestic freight audits alongside intra-European, intra-Asian and Intra-Latin American Audit.
In 2022, US-based company, Trimble, acquired the Cloud-based transportation management software platform Transporeon from software & services investor, Hg for $1.88 Billion. Prior to this Transporean has acquired the largest European FAP company, ControlPay. We also saw German tech Group Körber buy enVista's platform of Enspire Commerce Omnichannel solutions, including it's FAP services in 2022.
It seems that there is more than a suspicion in the industry that investment companies often value FAP companies incorrectly, confusing gross revenue with net profit, failing to appreciate that while the organisation may have vast amounts of revenue on their books, much of it is the client's money and not necessarily a true reflection of the company's in question actual profitability. The fees that FAP companies command for processing payments running into hundreds of thousands or even millions of dollars in reality may actually be small. As a result, private investors fall in and out of love with the FAP sector and often seek to sell on their acquisitions in a short timescale.
As well as being cost effective, Customs Plus™ products and services will improve and streamline your international trade, customs management and trade compliance. You will also embark on a virtuous cycle of development, leading to: Better employee conditions, leading to improved retention and morale Greener processes, which reflect well on your reputation and brand Faster processing of freight, leading to improved customer satisfaction More efficient interactions with Customs Authorities Reduced costs, therefore improved value for consumers
The freight audit and pay market is in a state of flux, with four of the ten biggest global players changing hands over the past couple of years
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Ireland and Brexit are continuing to provide plenty of business for UK-based freight audit and customs consultancy,
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EU based businesses wanting to continue to send goods to the United Kingdom (UK) will have new rules to follow when you move goods to Great Britain
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