Selling a Postal & Courier Services Business

Most courier and contracted delivery businesses price off SDE or EBITDA. Multiples usually move with carrier approval risk, scorecard trend, route density, and whether dispatch and coverage still depend on the owner. Buyers also haircut value for near-term fleet replacements and ugly loss runs because those can wipe out cash flow right after closing. For a starting range based on real transaction data, use the free valuation calculator, then pressure-test it against your capex plan and scorecard history.

Carrier contracts support higher value when renewal history is steady, volume is consistent, standards are predictable, and assignment approval is routine in that station. Value drops when routes are frequently re-bid, dispatch windows change with little notice, equipment requirements tighten, or volume gets cut after scorecard misses. Buyers handle that risk with a lower multiple, approval holdbacks, earnouts, or longer transition support. Be ready to explain how often standards change in your station and how you protect margin when they do.

Often yes, assuming tax returns show consistent earnings, add-backs are well documented, and the carrier will approve a new operator. SBA lenders look hard at carrier concentration, scorecard stability, insurance and claims history, and whether dispatch and coverage can run without the seller. Working capital matters, too, because payroll and fuel usually hit before settlement deposits clear. You can model payments and down payment scenarios with the SBA loan calculator, then tighten your diligence package to reduce lender follow-ups.

If carrier approval gates assignment, the timeline is usually driven by onboarding steps, interviews, insurance certificates, and station scheduling. Many deals see 30–90 days for approval depending on the carrier and market, plus time for diligence and financing. It’s worth mapping the approval sequence before you go to market and building the operator packet early. Rejigg helps you run a structured process with vetted buyers and a secure data room so you do not redo diligence from scratch for each buyer.

No. A broker can help, but many owners mainly need confidentiality, buyer screening, NDAs, and a clean diligence process. Those are the pieces Rejigg covers with pre-vetted buyers, digital NDAs, a built-in data room, and deal tracking. If your situation is complex, like multiple stations, messy books, or a carrier relationship in flux, a specialist broker may still be worth considering. For straightforward routes with solid records, many sellers run the process themselves.

Because approval and performance risk is real, courier deals often include holdbacks until carrier approval and transition milestones are met. Earnouts are also common, usually tied to keeping routes or volume for 60–180 days. Seller notes show up when lenders want more cushion or when the buyer is strong operationally but lighter on cash. These terms can work fine if they are measurable, time-bounded, and tied to items both sides can verify. Rejigg’s offer tools help you compare how much is paid at close versus contingent.

Working capital is a real issue in courier because payroll runs before settlement deposits, and deductions can hit without warning. Many deals are cash-free, debt-free with a working-capital target so the buyer does not walk into a Friday payroll problem on day one. The target should match your actual settlement rhythm, typical deduction weeks, and seasonal overtime. Protect yourself by defining what counts as current assets and liabilities and how the peg is calculated. Rejigg’s diligence checklist helps you lay out the logic cleanly.

Most buyers ask for four sets of documents: financials (tax returns, trailing-12, bank statements, add-back support), carrier materials (agreement, notices, scorecards, approval requirements), operations (route descriptions, staffing model, penalties and chargebacks), and fleet/insurance (vehicle list, maintenance records, titles or leases, policies and loss runs). Getting this organized early helps you keep momentum once an LOI is signed. Rejigg’s data room lets you share documents under NDA and control access by buyer stage.

Confidentiality is fragile in courier because rumors can cause resignations or extra station scrutiny. Most sellers use staged disclosure: market the business without naming the station or carrier, then share identifiers only after an NDA and basic buyer screening. Carrier approval can force earlier station involvement in some markets, so plan your message and timing ahead of time. Rejigg supports staged disclosure with pre-vetted buyers, digital NDAs, and permissioned access to sensitive documents.

Buyers usually want help with the hard-to-transfer parts: station relationships, dispatch cadence, escalation routines, and keeping drivers steady through the change. A good transition plan spells out who gets introduced to whom, what weekly station calls look like, what logins and devices get handed over, and what “done” means. Most deals include 2–8 weeks of structured support, and it can be longer if carrier approval or training takes time. See the transition planning guide.

Vehicle value usually comes down to reliability and replacement timing more than book value. A unit that can’t run a full day, or can’t meet the carrier’s equipment standards, does not protect service or scorecard performance, so buyers discount it heavily. Some deals price vehicles separately in an asset purchase, and others roll the fleet into enterprise value, but adjustments for end-of-life units, deferred maintenance, and lease mileage penalties are common. A clear 12–24-month replacement plan often preserves price better than arguing blue book.

Many courier deals are asset sales because buyers want to limit exposure to old claims, employment issues, and tax liabilities, and carriers sometimes prefer a clean operator onboarding. Sellers may prefer a stock sale for tax reasons, and it can simplify transfer of existing permits and relationships when allowed. The best structure depends on carrier requirements, entity history, and your tax situation. Loop in a CPA and an M&A attorney early so structure does not become a late-stage renegotiation. Rejigg helps keep the process organized while your advisors handle legal and tax work.

Approval risk should be addressed directly in the LOI, including deadlines, cooperation duties, and what happens if approval is delayed or denied. Many deals allow either party to walk away if approval is not granted by a set date, and some deals pivot to an alternate operator the carrier will accept. You can reduce the odds of a denial by screening buyers for relevant operating experience, capital, insurance readiness, and a credible day-to-day manager. Rejigg helps by bringing vetted buyers into the process and keeping approval documents ready in the data room.

Tax outcomes often depend on asset versus stock structure, how equipment is allocated, and depreciation recapture on vehicles. Owner perks run through the business can also create questions in diligence, even if they are legitimate add-backs, so cleaning that up ahead of time can help. State taxes may matter if you operate across state lines or have employees in multiple jurisdictions. Ask your CPA to model after-tax proceeds early so you can negotiate price and allocation with real numbers. Rejigg helps you keep documents and allocations organized for your advisors.

Courier offers can look similar on headline price but carry very different risk. Approval contingencies, holdbacks tied to scorecard performance, working-capital targets, and the buyer’s ability to close with SBA financing often matter more than a small price gap. Compare offers by how much you get at close, what has to happen to get the rest, and what depends on factors you cannot control, like station issues or volume changes. Rejigg’s deal tracking and offer comparison tools line up terms side by side so you are not decoding PDFs.

Non-competes in courier are usually written around the territory served, the station footprint, and a time period that reflects how long it takes the buyer to stabilize drivers and performance. What is reasonable depends on market density and state law, and some states restrict non-competes heavily. Non-solicitation clauses for drivers and station contacts are also common because those relationships affect service quickly. Have an attorney draft language that matches your routes and the carrier reality in your area. For negotiating points, see the deal negotiation guide.

Timing depends on your peak season and how stable staffing and fleet are. Selling right before peak can be tough because buyers do not want to learn routes under maximum pressure, but selling right after peak can show strong trailing performance and give the new owner time to hire before the next surge. Insurance renewal dates, planned fleet replacements, and carrier rebid calendars also change buyer confidence. If approval takes 30–90 days in your station, work backwards from your target close date. Rejigg helps you plan milestones using the preparation guide.

Start with what serious courier buyers need to know without naming the station publicly: route count and type (P&D versus linehaul), service area characteristics, fleet mix, headcount, and coverage approach, settlement cadence, and scorecard trend ranges. Share the carrier name, station, exact zips, and rate sheets only after an NDA and basic buyer qualification. This usually reduces rumor risk while still attracting operators who understand the business. Rejigg is built for staged disclosure with pre-vetted buyers, digital NDAs, and a controlled data room.