What a Buyer Checks First
- Gross profit by trade lane, not just total shipping revenue
- Share of revenue from the top five shippers
- Federal licenses and bonds held by the company, and who the qualifying individual is
- Carrier and airline agreements, and whether they allow a change of owner
- Claims history, cargo insurance and any disputes with customs
Profit Is Measured After Freight
Revenue for a forwarder includes the carrier's charge, so it looks big. Buyers care about what is left after paying carriers, called gross profit, and how steady that figure is from month to month.
A company with a few lanes that run all year is worth more than one chasing spot moves. Latin American routes, air freight into the airport and ocean freight through the port are priced very differently.
What Raises the Price
- Contracts with shippers that renew, not one off quotes
- Staff who hold the customer relationships, not only the owner
- Own warehouse or consolidation space, with a lease that transfers
- Clean records on customs entries and duties paid for clients
What Gives Buyers Pause
One shipper that supplies a third of profit is the usual worry. So are old receivables, since forwarders often front duties and freight and wait for customers to pay.
Buyers also look at how much the owner personally knows about customs rules and carrier rates. If the knowledge sits in one head, the price drops or the seller stays on to train.
Licenses and Carrier Terms
Forwarders hold federal licenses and bonds, and customs brokers work under their own federal licensing. These rarely move to a buyer as is.
The buyer usually needs a qualified individual and their own filings, so lining that up early prevents a delay at closing.
Check your carrier and airline agreements too. Some require notice or approval on a change of owner.
Where Buyers Come From
Larger forwarders add Miami volume by buying smaller shops. Foreign companies use a purchase to open a U.S. office, and managers sometimes buy out the owner.
Read about international buyers and the Doral warehouse district, where many of these companies sit.
To find out what yours is worth, request a private estimate.