Freight Brokerage with Warehousing, $8.5M Revenue Logistics Operator

$8.5M

Revenue

$1.7M

SDE

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Full Editorial Writeup

This is an asset-light freight brokerage with bolt-on warehousing capabilities, meaning it arranges the movement of clients' freight through a large network of carriers and trucking companies rather than owning a fleet. The warehousing piece gives it storage and fulfillment optionality, and the listing emphasizes a centralized location that provides logistical advantages for distribution. On roughly $8.5M of revenue it produces $1.68M of EBITDA, a ~20% margin that is strong for a brokerage model.

The standout fact is growth: revenue compounded at a 41.1% CAGR from 2021 through 2024. That is a torrid pace for a logistics business, and it coincided with one of the most volatile freight cycles in recent memory (the 2021 to 2022 boom followed by the 2023 to 2024 freight recession). The company was also recognized as one of America's Best Entrepreneurial Companies, which signals real operating momentum rather than a sleepy lifestyle shop.

For a buyer, the appeal is a profitable, fast-growing service business with low capital intensity and multiple expansion levers: new regional markets, technology investment, and deeper warehousing penetration. The open questions are around customer concentration, how much of that growth was rate-driven versus volume-driven, and the durability of margins as freight rates normalize.

Why we like it

Earnings quality is attractive for the category: $1.68M EBITDA on $8.5M revenue is a ~20% margin, which is high for brokerage where net revenue is the spread between carrier cost and shipper price. The warehousing add-on diversifies the revenue mix beyond pure brokerage spread and introduces stickier storage fees.
The business is asset-light and scalable: it brokers freight across a large carrier network rather than owning trucks, so growth does not require heavy capex on tractors and trailers. That keeps capital intensity low and free cash flow conversion high relative to an asset-based carrier.
The growth trajectory is exceptional, with revenue compounding at 41.1% annually from 2021 through 2024 and recognition as one of America's Best Entrepreneurial Companies. Even accounting for the freight-cycle boom in that window, that pace reflects real commercial traction and a scalable sales engine.
Freight and warehousing are essential infrastructure that moves goods regardless of the economic cycle, so demand does not disappear in a downturn even if rates compress. A buyer with logistics or warehousing experience can layer in regional expansion and technology to extend the runway.

How to improve it

Audit and diversify the customer base in the first 90 days to quantify concentration risk, then launch a targeted outbound effort to add mid-market shippers. Brokerages with top-heavy customer rosters trade at lower multiples, so broadening the book directly protects and grows value.
Decompose the 41.1% CAGR into rate versus volume and into brokerage versus warehousing, so you know what is durable versus cycle-driven. This informs where to reinvest and prevents overpaying for growth that was really just the 2021 to 2022 freight spike.
Expand warehousing utilization and convert more brokerage clients into value-added storage and fulfillment customers. Warehousing revenue is stickier and higher margin than spot brokerage, and cross-selling the existing freight base is the cheapest customer acquisition available.
Invest in the technology roadmap the listing already flags: machine learning for load matching, better inventory management, and IoT in the warehouse. Small automation gains in carrier sourcing and claims handling drop straight to the bottom line in a spread business.
Build a recurring or contractual revenue layer through dedicated lanes, managed transportation agreements, and warehousing contracts with minimum volume commitments. Converting transactional brokerage into contracted relationships raises retention and the exit multiple.
Penetrate new regional markets as the listing suggests, but do it by hiring proven brokers with portable books rather than starting cold. In brokerage, talent carries the customer relationships, so a disciplined recruiting playbook is the fastest path to geographic expansion.
Tighten carrier management and credit controls to protect margin as rates normalize, including vetting, payment terms, and claims exposure. Freight brokers live and die on the carrier cost side, and disciplined procurement is where margin is won or lost.

Diligence notes

Scrutinize customer concentration and contract structure: find out what share of revenue the top five shippers represent and whether any relationships are contractual versus transactional spot business. High concentration plus spot-only relationships is the single biggest risk to the stated EBITDA.
Reconstruct the growth story by separating rate-driven gains from volume-driven gains across 2021 to 2024. The freight market boomed then cratered in that window, so you need to confirm the 41.1% CAGR reflects durable share gains rather than a transitory rate spike.
Verify the quality of the $1.68M EBITDA with normalized add-backs, owner compensation, and the treatment of the warehouse lease. Confirm whether margins have held into late 2024 and 2025 as spot rates compressed, since brokerage spreads tighten fast in a soft market.
Examine the warehousing lease terms, remaining duration, renewal options, and rent escalators, since the real estate is leased and the centralized location is central to the value proposition. A short or above-market lease could materially change the economics post-close.
Assess the sales team and operating bench to understand how much of the business depends on the owner's relationships. In brokerage, the enterprise value sits with the brokers and the book, so you need a retention plan and clarity on the seller's post-sale transition commitment, which is not disclosed.

Source

Originally listed on BizBuySell. View original listing →