Radiant Logistics Seeks Further Acquisition Opportunities, Undervalued at 7x Trailing EBITDA

Radiant Logistics is a non-asset-based 3PL multinational logistics company with a low valuation of 7x trailing and 5x normalized EBITDA. Despite being underfollowed, the company is actively pursuing additional acquisition opportunities to drive growth and increase its market share.

Radiant Logistics (NYSE: RLGT), a non-asset-based third-party logistics (3PL) company, has been quietly growing its market share through strategic acquisitions despite the current freight recession. The company, founded in 2005 by CEO Bohn Crain, operates an extensive network of transportation and value-added services, primarily in the US and Canada. With a valuation of 7x trailing and 5x normalized EBITDA, RLGT is significantly undervalued compared to its larger peers Radiant Logistics: Actively Pursuing Additional Acquisition Opportunities^[1].

The company's model is designed to shield it from the cyclical downturns experienced by traditional carriers. By operating an agency network of approximately 100 locations, RLGT arranges shipments for large items that are beyond the capacity of integrated global carriers like FedEx or UPS. This approach allows RLGT to adapt quickly to volume shifts and avoid the heavy capital expenditures associated with asset ownership Radiant Logistics: Actively Pursuing Additional Acquisition Opportunities^[1].

Despite the current economic slowdown, RLGT has accelerated its pace of acquisitions. From 2006 to the present, the company's revenues have grown 35 times to over $900 million, while the share count has increased by only about 40%. This growth has been achieved without diluting shareholders, as the company has maintained a pristine balance sheet with a net cash position Radiant Logistics: Actively Pursuing Additional Acquisition Opportunities^[1].

The company's capital allocation strategy involves acquiring agencies and greenfield operations at mid-single-digit EBITDA multiples. This approach allows RLGT to expand its network and market share while maintaining a strong financial position. As of the most recent quarter, the company's pipeline remains robust, and management is actively pursuing additional acquisition opportunities Radiant Logistics: Actively Pursuing Additional Acquisition Opportunities^[1].

Generational Group, a leading investment banking firm for privately held businesses, has nominated RLGT for the M&A Advisor Awards, recognizing the company's strategic acquisitions. Specifically, Generational Group nominated RLGT for the "Consulting Firm of the Year" and "Business Development Professional of the Year" categories Generational Group Receives Multiple Nominations for 24th Annual M&A Advisor Awards^[2].

As the freight recession continues, RLGT's strategic acquisitions position it to emerge significantly larger and stronger when volumes recover. The company is expected to continue generating cash and deploying it intelligently while waiting for earnings power to normalize and shine through.