Freight Brokerage Business Valuation
Who this is for
Freight brokerage owners evaluating acquisition offers, PE investors building logistics platforms, and shippers considering acquiring their broker partner will find this tool most relevant.
What drives value in Freight Brokerage
- Net revenue margin (spread between buy and sell rates) and gross profit per load
- Carrier network depth and contract capacity availability
- Technology platform — TMS capabilities versus manual brokerage
- Shipper concentration and contract coverage versus spot exposure
- Revenue mix between truckload, LTL, and specialty modes
- Back-office scalability — load-per-broker ratio
Valuation methods we use
Freight brokerages are valued on net revenue (gross profit) multiples of 5–10× and EBITDA multiples of 7–12× for technology-enabled platforms. Gross revenue multiples (0.1–0.3×) are used as a floor check. This tool is informational only. Output is driven by your inputs and does not constitute a formal appraisal or certified valuation.
Typical metrics and inputs
Gross revenue
Total revenue billed to shippers; top-line scale measure.
Net revenue (gross profit)
Gross revenue minus carrier costs; the true economic output and primary valuation denominator.
Net revenue margin
Gross profit as a percentage of gross revenue; typically 12–20% for non-asset brokers.
Load count
Total shipments arranged per year; reflects operational throughput.
Loads per broker
Productivity metric; 150–300 loads per broker per month for technology-enabled brokerages.
Example scenarios
Technology-enabled TL brokerage
A freight broker with $30 M gross revenue, 15% net margin ($4.5 M net revenue), and a proprietary TMS might trade at 7–9× net revenue.
Relationship-based regional broker
A regional broker with $8 M gross revenue, 17% margin, but no proprietary technology might be valued at 5–6× net revenue due to key-man risk.
Frequently asked questions
Is freight brokerage valued on gross or net revenue?
Net revenue (gross profit) is the correct valuation denominator. Gross revenue is misleading due to high carrier pass-through costs.
What EBITDA multiple do freight brokers sell for?
Typically 5–10× EBITDA; technology platforms with proprietary TMS and digital carrier networks can reach 10–14×.
How does shipper concentration affect value?
If one shipper represents >20% of revenue, most buyers will require reps and warranties and may apply a discount to that revenue stream.
Does a TMS (Transportation Management System) increase value?
Yes — proprietary technology reduces key-man risk, improves scalability, and supports a premium multiple versus purely relationship-driven brokerages.
Is this a certified appraisal?
No. This tool provides informational estimates. For formal M&A transactions, engage a logistics industry advisor.
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