No deal for Forward Air sends shares lower

Core Viewpoint - Forward Air's stock has declined significantly due to the slowdown in its acquisition process, with no imminent buyout expected, leading to investor concerns and calls for a strategic review of operations [1][2][3]. Financial Performance - In the second quarter, Forward Air reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $74 million, reflecting a $5 million increase sequentially [5]. - The company's net debt stood at $1.69 billion, which is 5.7 times its last 12 months' consolidated adjusted EBITDA of $298 million, an increase from 5.3 times at the end of the first quarter [5]. Stock Performance - Forward Air's shares fell more than 20% during a recent trading session, closing at $19.19 per share, down 4.7% for the day, and have decreased over 30% in the past month due to the lack of a viable acquisition offer [2]. - Prior to the announcement of the Omni Logistics deal in August 2023, shares of Forward Air traded at $110 [5]. Acquisition Process - Reports indicate that the auction process for Forward Air has slowed due to unsatisfactory bids from private equity firms, with Clearlake Capital and Apollo Global Management still in contention after submitting second-round bids [1][4]. - Investors have expressed dissatisfaction with the previous merger with Omni Logistics, which increased the company's debt and raised concerns about competition with existing customers [3]. Upcoming Events - Forward Air is scheduled to report its third-quarter results after the market closes on November 5 [5].