Freight, courier, and logistics operations run on contracts and fuel margins. This guide covers the benchmarks buyers use and the red flags to check before making an offer.
Typical transportation and logistics valuations run 2.0x to 3.5x SDE; contracted route and dedicated-fleet revenue pushes toward the high end, spot-market and cash loads pull it down. Key factors: contract terms and assignment clauses, customer concentration, fleet age and maintenance records, driver retention and licensing, insurance and claims history, and fuel-cost pass-through arrangements. Before trusting the broker's numbers, verify contracts transfer on sale, compare fuel and maintenance logs against reported margins, and check whether the owner personally holds the customer relationships.