How much is a 3PL business worth?

What does a buyer of a 3PL actually pay for?

Not the building. Most third-party logistics providers lease their warehouses, so a buyer is paying for the client book, the sites the business has secured, the people who run the floor and the systems that connect it to each client's ordering. The racking, forklifts and any trucks are part of what produces the earnings, so they sit inside the value rather than being added on top.

The earnings measure needs care. Rent is usually a 3PL's largest cost after labour, and a business reporting under AASB 16 shows it below EBITDA, which flatters the figure without changing the cash. So every business is put on the same footing, normally earnings after rent, before anything is compared or capitalised. How a warehouse lease affects value and our article on EBITDA vs EBIT explain the adjustment.

Which measures matter most in a 3PL valuation?

• Client term against lease term. A lease running for years with clients on short or rolling agreements leaves the rent behind if a large client goes.
• Contribution by client. Revenue share understates the risk; what each client contributes after direct labour shows what would be lost.
• Utilisation. Occupied pallet positions and throughput month by month, including outside the end of financial year and Christmas peaks.
• Open-book or closed-book pricing. Cost-plus arrangements move rent and wage risk to the client; rate cards keep it with the provider.
• Rate reviews. Whether storage, handling and pick rates have actually risen with award wages and rent, or have sat still for years.
• Systems. A warehouse management system integrated with clients' ERP and ecommerce platforms is costly for them to replace, which supports renewals.

Our 3PL and contract logistics guide covers each of these in depth, and the warehouse and storage page covers make good, customs licences and site dependency.

Does a 3PL with its own trucks change the answer?

Yes. Once the business runs its own prime movers, rigids or vans for container cartage or last-mile delivery, the fleet adds a capital cycle the warehouse side does not have. Trucks wear out on a schedule, carry finance and need drivers, so earnings have to be measured after realistic fleet replacement spending, and finance owing comes off the price. The transport and logistics business valuation page explains how fleet age, fuel recovery and driver arrangements are treated.

Combined warehousing and transport operators are often valued division by division, because each half carries different risks, then brought together with the shared overheads.

How do I find out what my 3PL is worth?

Start with our 3PL business valuation page, which sets out what we analyse and what we need. The broader method is in our guide to valuing a logistics business and on how we value.

Fees are fixed by annual turnover; multi-site operators often sit in the complex band. Turnover over $10 million or a complex structure: From $3,495 + GST. We confirm the fee in writing before we start. No hourly billing. See pricing for every band, or request a quote with a short description of your sites and clients.