Expert valuation services for distribution centers, logistics companies, warehousing operations, and supply chain businesses.
Distribution and logistics businesses—including warehousing operations, transportation companies, fulfillment centers, and supply chain management firms—have unique valuation considerations that reflect their asset-intensive nature and operational complexity.
At Seventh Economy, we understand that distribution and logistics businesses often derive value from their physical assets, strategic locations, operational efficiency, customer contracts, and technology systems. Our specialized approach accounts for these industry-specific factors.
Distribution and logistics businesses typically sell for 4-7 times EBITDA, with higher multiples for companies with advanced technology, strategic locations, and diversified customer bases. This method accounts for the operational efficiency and earning potential of the business.
Given the asset-intensive nature of distribution businesses, this method values the company based on its tangible assets (vehicles, warehouses, equipment) plus a premium for goodwill and customer relationships. This approach is particularly relevant for businesses with significant physical assets.
Some distribution businesses are valued at 0.4-0.8 times annual revenue, depending on profit margins, growth rate, and market position. This method is often used as a supplementary approach to EBITDA-based valuations.
For distribution businesses with predictable cash flows and long-term contracts, DCF analysis provides a forward-looking valuation based on projected future earnings. This method is particularly valuable for businesses with growth potential or changing market dynamics.
Many distribution businesses rely on a small number of key customers. We assess concentration risk and its impact on business value and transferability.
The condition and age of fleet vehicles, warehouse equipment, and facilities significantly impact valuation. We conduct thorough asset assessments to determine true value.
Modern distribution businesses rely heavily on technology systems. We evaluate the sophistication and integration of these systems and their contribution to operational efficiency.
Distribution and logistics companies face complex regulatory requirements. We assess compliance status and potential liabilities that could affect valuation.
"Seventh Economy's valuation process uncovered hidden value in our real estate holdings and customer contracts that other valuators had overlooked. Their comprehensive approach helped us secure a valuation 25% higher than initial offers."
Michael Johnson
Former Owner, Premier Distribution Services
Our specialized valuation process will help you understand the true worth of your distribution or logistics operation and position it for maximum value.
