A courier buyer's first look
- Revenue from scheduled routes versus on demand runs
- Your top clients and how long each has used you
- Drivers: employees, contractors or both
- Vehicles owned, leased or driver supplied
- Insurance history and open claims
Buyers of courier companies tend to work through the same short list. Here it is in the order they usually take it.
1. How the money comes in
Scheduled routes under contract, like daily lab pickups or a standing run between a law firm's offices, are the most valuable revenue a courier has. On demand work is good business, but a buyer cannot count on it the same way.
Show both, by client, for three years. If the scheduled share has grown, say so.
2. Who the clients are
Courier companies often grow around a few large accounts. If the top two or three bring in more than about 15 to 20% of revenue, buyers will discount for it or ask for part of the price to depend on keeping them.
Bring copies of client agreements. Buyers look for term length, notice periods and any right to cancel on a change of ownership. Some government work may need agency approval through novation in an asset sale.
3. Drivers
This is often the biggest question in a courier deal. Many companies use independent contractor drivers. A buyer will ask how drivers are classified, how they are paid, and whether the setup would hold up if challenged.
Your attorney should review it before you list.
Dispatchers and a reliable core of drivers who know the routes are a large part of what a buyer is paying for. Plan how to keep them through the handover.
For employees in the District, a buyer who keeps substantially the same staff usually becomes a successor and takes on your unemployment tax rate history. See the DOES account guide.
4. Vehicles, insurance and systems
- A fleet list with age, mileage, ownership and any loans or leases
- Loss runs from your insurer for the last several years
- Dispatch and tracking software, and who owns the account
- Any parking or storage space you lease
A clean claims history helps the buyer get insurance at a fair price, which shows up in what they can pay you.
If the sale includes equipment, furnishings or supplies in the District, the buyer must send OTR a bulk sale notice before paying and will often hold back money until your taxes are clear.
5. Earnings after recasting
Courier owners often drive routes themselves, run personal vehicles through the company or pay family members. A buyer recasts all of it to see what the company earns with a paid manager in your seat. The valuation guide explains how.
Most courier companies in this range sell as asset sales, often around 2 to 3 times owner cash flow, with steady contract routes pushing toward the top.
To find out what your routes and clients might be worth, send a short request or call (202) 555-0174.