Can anyone help with Freight/LTL Multiples?

January 29, 2026

by a searcher from University of California, Los Angeles in San Diego, CA, USA

My partner and I are evaluating the acquisition of a freight agency (mostly LTL but some TL) with approximately $1 million in EBITDA. The business is an agent of a large freight brokerage (Priority 1). There is a large team in place such that the owner does not have to be involved in the business on a full time basis. There is some customer concentration risk but the relationships are not super dependent on the seller specifically. The business has been very steady, averaging close to $1 million in EBITDA for the last four years (on approximately $2 million in revenue). What would an appropriate EBITDA multiple be for the business, and what percentage of the deal price would typically be held back and conditioned upon retention of key customers over a period of time following closing. Thanks!

Reply by a searcher
from Massachusetts Institute of Technology in Los Angeles, CA, USA

We use LTL carriers daily to ship our product because it is bulky and must be shipped on pallets. We use XPO, Road Runner, Estes etc)...I can't answer your question about multiples; however, as a customer of these LTL services, I can tell you that the service providers are absolutely the worst at managing freight. The freight handlers in the warehouses are often "bottom of the barrel" - I can show you photos of the disastrous journeys several of our pallets have been on. All these carriers are horrible at paying out claims. As a freight agency, you will *often* have to deal with very angry customers. On average, I lose $30K to $50K annually due to product damage in transit. We used a freight agency for a period of time, and decided to have direct arrangements with the carriers just so we could control the claims process directly. I would not invest in this industry; that $1MM EBITDA is likely built on the backs of very angry customers.

Reply by a professional
from American University in Irvine, CA, USA

Hi, ^redacted‌. I previously represented a company in the space that made some bolt-on acquisitions. The most critical due diligence items we had to review included proper registration with the DOT, evidence of compliance with safety regulations, including vehicle ownership and operation, and drug testing, and that all agreements for carriage are properly written (in compliance with federal truth-in-leasing requirements and related legislation. If you would like any help, or to speak further about anything, feel free to DM me here.

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