Selling a courier business — or a wider logistics business — in Sydney puts you in one of the country's largest and fastest-growing markets. Australia's courier, express, and parcel market is worth over $11.7 billion and growing at close to 5% annually, driven by e-commerce demand and last-mile delivery growth. The broader freight and logistics market exceeds $99 billion, and Sydney sits at the centre of it as Australia's largest logistics hub.
Logistics and courier businesses can be highly attractive acquisitions: recurring delivery contracts, essential service positioning, and scalable operations. But they also come with asset-heavy balance sheets, complex workforce models, and regulatory obligations that buyers scrutinise carefully.
This guide covers fleet-based courier and logistics businesses. Freight forwarding and customs brokerage businesses are valued on different metrics (typically gross profit multiples) and will be covered in a separate guide.
For the full end-to-end sale process, my guide to selling a small business in Sydney covers everything from preparation to settlement.
1. How logistics and courier businesses are valued
The valuation approach depends on the size and type of operation. Smaller courier and delivery businesses are valued on SDE multiples. Larger logistics operations with management teams typically use EBITDA.
| Business type | Typical multiple | Why |
|---|---|---|
| Owner-operator courier runs | 1.0 – 1.5x SDE | Single vehicle, contracted to a network. Selling a job, not a business — solo operators without contracts often trade below the broader logistics industry floor of 2x SDE. |
| Multi-vehicle courier with contracted routes | 2.0 – 3.0x SDE | Multiple vehicles, regular clients, some systems in place. |
| Established logistics/freight with commercial contracts | 3.0 – 5.0x EBITDA | Employed drivers, management layer, contracted revenue. |
| Specialist or niche logistics | 4.0 – 6.0x+ EBITDA | Medical, dangerous goods, cold chain. Higher barriers, premium multiples. |
Nash Advisory's transport and logistics sector overview and DealStream's logistics rules of thumb provide useful benchmarks. For how logistics compares to other Australian sectors, see my guide to valuation multiples by industry. For a quick estimate, use the Business Valuation Calculator.
The fleet adds complexity. Unlike pure service businesses, logistics businesses have significant tangible assets. Trucks, vans, and trailers are typically valued at 50 to 75% of current market replacement cost depending on age and condition. This value sits on top of the goodwill/earnings multiple. Buyers will want a detailed fleet register covering every vehicle: age, kilometres, maintenance history, and remaining useful life.
2. What buyers look for
Four things consistently move a logistics business from "interesting" to "I want to make an offer."
Contracted recurring revenue. Contracted, recurring revenue commands a premium across every industry I cover. A courier business with a 3-year contract servicing a hospital network's daily pathology deliveries is worth far more than one running ad hoc deliveries booked through an app. Buyers will map your revenue by contract: who the client is, annual value, term, renewal date, and whether the contract allows assignment to a new owner. If most of your revenue comes from spot work or marketplace platforms, the multiple will reflect that volatility.
A compliant workforce model. Logistics businesses face the same scrutiny as cleaning businesses: are your drivers employees or owner-drivers/contractors? Both models are legitimate, but the regulatory landscape is shifting. The Fair Work Commission now has powers to set minimum standards for road transport contractors, and NSW has expanded its General Carriers Contract Determination to impose new obligations on businesses engaging owner-drivers. Buyers will want to understand how many drivers are employed vs contracted, whether arrangements withstand scrutiny, and the risk of reclassification. This will be a major focus during due diligence.
Technology and systems. Modern logistics runs on technology. Buyers want to see route optimisation software, GPS tracking, proof of delivery systems, and integration with client platforms. A business still managing deliveries via phone calls and paper run sheets will be discounted. The good news is that technology also reduces owner dependence: if dispatch and routing is systemised, the business runs without you making every allocation decision.
Fleet condition. Well-maintained vehicles with complete service histories add real value. Worn-out vehicles that need replacing subtract from the sale price. Buyers will commission independent valuations for high-value assets and factor replacement costs into their offer.
3. The compliance checklist
Buyers will check these during due diligence. Get them right before you go to market.
| Requirement | What's needed |
|---|---|
| Chain of Responsibility (CoR) | If your fleet includes vehicles over 4.5 tonnes GVM, you fall under the Heavy Vehicle National Law. CoR makes every party in the supply chain accountable for fatigue management, speed, mass, dimension, and load restraint. Penalties reach $3 million for companies. Buyers want to see your compliance framework: fatigue policies, maintenance schedules, mass management systems, training records. NHVAS accreditation is a significant plus. |
| Vehicle registrations and inspections | Every vehicle currently registered with valid CTP insurance. Heavy vehicles need current NHVR registration. Complete maintenance records for every vehicle. |
| Driver licences and accreditations | Every driver holds the correct licence class. Dangerous goods drivers need DG licences. Any specialist accreditations (medical transport, cold chain) documented and current. |
| Insurance | Fleet insurance, goods in transit insurance, public liability, and workers compensation. Claims history affects premiums under new ownership, and buyers factor frequent claims into their offer. |
| Contractor agreements | If you use owner-drivers, contracts must comply with the NSW General Carriers Contract Determination and federal minimum standards. Contractor rights and protections are evolving, and buyers will assess your exposure. |
4. Who buys logistics and courier businesses?
| Buyer type | What they want | What it means for you |
|---|---|---|
| Competitor operators | Absorb your routes, contracts, and fleet. Strip out duplicate management costs. | Often the highest price, but significant confidentiality risk. They see your clients, pricing, and margins. See my guide to selling to an individual buyer vs a competitor. |
| Larger logistics companies | Niche capabilities, geographic coverage, or specialist contracts (medical, legal, cold chain). | May pay a premium for specialist capability. More structured process with corporate due diligence. |
| Individual buyers | A business with physical assets, contracted revenue, and clear operational structure. | Longer handover (8–12 weeks). Driver and client relationships need to transfer cleanly. More motivated to retain staff. |
5. Preparing for the sale
| Phase | Focus | Key actions |
|---|---|---|
| Months 1–3: Audit and fix | Fleet, compliance, books | Create a detailed fleet register (age, km, maintenance, market value). Audit CoR compliance. Clean up and reconcile financials, ensuring fuel costs, vehicle depreciation, and maintenance are properly treated. |
| Months 3–6: Strengthen the business | Contracts, systems, workforce | Formalise client contracts with assignment clauses. Implement or upgrade route optimisation and proof of delivery systems. Resolve any borderline contractor arrangements (get legal advice). |
| Months 6–9: Reduce owner dependence | Delegation, documentation | Promote a dispatch manager or operations lead. Document processes for quoting, client onboarding, route allocation, and driver management. |
| Months 9–12: Go to market | Valuation, listing, screening | Get a professional valuation or engage a broker. Prepare your IM and data room. Get independent fleet valuations for high-value assets. |
6. What to do next
If you're thinking about selling your logistics or courier business, start with three things: a fleet audit, a contract register, and a compliance review. Those are the three areas buyers dig into first, and having them in order before you go to market signals a well-run operation.