Highly fragmented · $90 billion+ US freight brokerage market (gross revenue basis)

Acquire a Logistics & Freight Brokerage
Business

The freight brokerage and logistics industry serves as the connective tissue of the US supply chain, matching shippers with carriers across truckload, LTL, and intermodal modes. The sector is highly fragmented with tens of thousands of licensed brokers, the vast majority being small independents generating under $10M in gross revenue, making it an active target for consolidation and roll-up strategies. Despite cyclical freight market volatility, demand for third-party logistics intermediaries remains structurally supported by shipper outsourcing trends and increasing supply chain complexity.

Who buys these: Private equity-backed logistics roll-up platforms, strategic acquirers such as regional 3PLs and national freight brokers, independent owner-operators with industry experience, and entrepreneurial buyers seeking asset-light service businesses with recurring revenue

3.56×

Typical EBITDA multiple

$1M–$5M net revenue

Revenue range

Growing

Market trend

SBA Eligible

7(a) financing available

Typical Acquisition Criteria

Minimum $500K EBITDA, net revenue (gross margin) of $1M–$4M, diversified shipper base with no single customer exceeding 20–25% of revenue, established carrier network, at least 3 years of operating history, and a management team willing to stay through transition

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Buyer Pain Points

  • 1Customer concentration risk where top 3–5 shippers account for majority of revenue, creating fragile cash flow
  • 2Dependence on key sales personnel or the owner for carrier relationships and shipper accounts
  • 3Difficulty verifying true net revenue margins versus gross revenue in broker financials during diligence
  • 4Volatility in freight rates and carrier capacity making forward earnings projections unreliable
  • 5Technology stack obsolescence or lack of a modern TMS platform reducing operational scalability

Common Deal Structures

  • 1SBA 7(a) loan financing with 10–20% buyer equity down and seller note for gap financing
  • 2Partial equity rollover with earnout tied to shipper retention and gross margin targets over 12–24 months
  • 3Full cash acquisition with performance-based earnout structured around net revenue growth milestones

Due Diligence Focus Areas

Key items to investigate when evaluating a Logistics & Freight Brokerage acquisition

  • Net revenue vs. gross revenue reconciliation and carrier cost validation across historical periods
  • Customer concentration analysis including contract status, tenure, and renewal risk for top accounts
  • Carrier network depth, compliance records, and freight broker authority/bond documentation
  • Key employee retention risk, non-compete enforceability, and owner dependency assessment
  • Technology infrastructure review including TMS, CRM, and integration with load boards or EDI systems

Competitive Moats

  • Deep carrier relationships with preferred capacity access during tight freight markets providing service reliability
  • Specialized lane expertise or industry vertical focus such as temperature-controlled, hazmat, or oversized freight
  • Proprietary shipper relationships built on years of consistent performance, pricing trust, and dedicated account management

Key Industry Risks

  • Freight market cyclicality with rate compression during soft markets squeezing net margins and EBITDA
  • Disintermediation risk from digital freight matching platforms and direct shipper-carrier technology tools
  • Regulatory and compliance risk including broker bond requirements, carrier vetting liability, and evolving FMCSA rules

Seller Intelligence

Who sells Logistics & Freight Brokerage businesses?

Owner-operators aged 55–70 approaching retirement who built a freight brokerage from scratch, second-generation family business owners lacking a succession plan, and founders experiencing burnout from market volatility and thin margin pressure who want to monetize their carrier relationships and book of business

Typical exit timeline: 12–24 months

Seller page

Frequently Asked Questions

How much does a Logistics & Freight Brokerage business cost?

Logistics & Freight Brokerage businesses in the $1M–$5M net revenue revenue range typically sell for 3.5–6× EBITDA. Minimum $500K EBITDA, net revenue (gross margin) of $1M–$4M, diversified shipper base with no single customer exceeding 20–25% of revenue, established carrier network, at least 3 years of operating history, and a management team willing to stay through transition

What EBITDA multiple do Logistics & Freight Brokerage businesses sell for?

Logistics & Freight Brokerage businesses typically trade at 3.5–6× EBITDA in the lower middle market. The market is highly fragmented with growing demand, which supports premium multiples.

How do I buy a Logistics & Freight Brokerage business with an SBA loan?

Logistics & Freight Brokerage businesses are SBA 7(a) eligible, making them accessible to first-time buyers. SBA 7(a) loan financing with 10–20% buyer equity down and seller note for gap financing

What should I look for when buying a Logistics & Freight Brokerage business?

Key due diligence areas include: Net revenue vs. gross revenue reconciliation and carrier cost validation across historical periods; Customer concentration analysis including contract status, tenure, and renewal risk for top accounts; Carrier network depth, compliance records, and freight broker authority/bond documentation; Key employee retention risk, non-compete enforceability, and owner dependency assessment; Technology infrastructure review including TMS, CRM, and integration with load boards or EDI systems.

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