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Would-be sellers of privately owned road transport companies should be more open about their profitability, says leading analyst Plimsoll. Senior analyst David Pattison says many private road transport firms take as much as 80% of their profit as directors' fees and other payments. This is a perfectly legal way to cut their tax bills. However, when selling such a company it means the true level of profitability  cannot be demonstrated, which will reduce the firm's value on the market.

"Private equity companies are always looking for new profitable ventures and there is no reason to think they wouldn't be interested in haulage," says Pattison. He reports that 1,481 of the top 2,000 road transport companies are privately owned, and the private companies are outstripping their corporate rivals. Plimsoll also believes the high average age of directors in the sector puts companies at risk of succession crises, in which case the next generation of owners may be open to takeover offers.

"We are hearing a lot of this anecdotally," he says. "Companies protect themselves from tax in the short-term thinking it doesn't matter. But they should have a view to the future and ensure the best possible price should they ever choose to sell." The latest Plimsoll report suggests that while sales to equity firms can result in a loss of experience, new owners tend to bring higher levels of focus and  innovation.