Over the past year, there has been major growth in the acquisition market, with no signs of
decline. There are several reasons as to why most that have made most small companies not to
excel in a quite harsh economic environment. Jonathan Britva, a principal at investment bank
Republic Partners, said that new regulations, increased insurance costs, integrations of ELDs and
other technological advancements, have been at the helm of make it difficult for companies to
operate and generate revenue healthily.

Lee A. Clair, a managing partner at Transportation and Logistics Advisors, noted that the
pressure on smaller companies has been a trend for quite some while. He acknowledged that the
trend is expected to last for quite some time since most small companies opt for sales rather than
bankruptcy. Both freight and logistics companies have been affected by ongoing sales and
acquisitions.

Fusion Transport CEO Frank Matarazzo stated that he had seen several companies dive into
making the acquisitions, in the transportation and logistics sector, and not just in the trucking or
warehousing industry. Clair reiterated that the reason even smaller companies thrived in 2018 is
the fact that the market was robust and revenue was well generated. In 2019, companies that
were on the line financially were advised to sell out. He added that small companies would be
adversely affected by the new insurance policies that are likely to skyrocket since the incomes
have grown.

Matarazzo claimed that other companies are often interested in making acquisitions that would
help them improve their services through integrations. Armstrong & Associates President Evan
Armstrong also acknowledged the ongoing acquisitions and investments. Clair is in support of the trend since it gives small companies an option to escape bankruptcy, and with alarming insurance cost rates, worse is to be expected.