Exit Strategies: Selling Your Trucking Business

You've been running your trucking business for 10 years. Three trucks, good drivers, steady customers. You're ready to retire or move on to something else.

You Google "how much is my trucking business worth" and think: "$500,000 annual revenue, probably worth $1-2 million."

You list it for $1.5 million. You get zero serious offers.

Here's the truth about selling trucking businesses, what they're actually worth, how to value your company, where to find buyers, and why many trucking businesses are worth far less than owners expect.

What Trucking Businesses Are Actually Worth

Valuation Methods

Method 1: EBITDA Multiple (Most Common)

EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization

From industry valuation data: "Q1 2025 data shows privately owned trucking companies typically command EBITDA multiples between 5x and 8x, meaning a company generating $1 million in annual EBITDA could be worth $5-8 million."

Example:

• Annual revenue: $500,000
• Operating expenses: $420,000
• EBITDA: $80,000
• Valuation (6x EBITDA): $480,000

Reality check: Most small trucking companies (1-10 trucks) sell for 3-6x EBITDA, not 6-8x.

Method 2: Asset-Based Valuation

If your business has no consistent profit, buyers value it based on assets.

Assets include:

• Trucks (current market value, not what you paid)
• Trailers
• Shop equipment
• Spare parts inventory
• Customer contracts (if transferable)

Example:

• 3 trucks worth $180,000 (market value)
• 2 trailers worth $40,000
• Shop equipment worth $10,000
• Asset value: $230,000

If your business isn't profitable, expect asset value MINUS 20-30% (buyers discount for hassle).

From TruckersReport forum:

"The value of any business most always boils down to the 'net' annual profit." - Omega1

Method 3: Revenue Multiple (Rarely Used for Trucking)

Some industries sell for 0.5-2x annual revenue. Trucking rarely does.

Why: Low profit margins (2-8%) mean revenue multiples are meaningless. A $1M revenue company might net $40K or $80K. Massive difference in value.

What Small Trucking Companies Actually Sell For

1-3 truck operation:

• Authority only (no trucks): $500-$5,000
• Authority + 1-3 trucks: $50,000-$250,000 (depends on truck values and profitability)

From TruckersReport:

"MC numbers worth about $2-5K and trucks at $17-22K per rig."

3-10 truck operation:

• Unprofitable: Asset value minus 20-30%
• Profitable ($50K-$150K net): $250,000-$750,000
• Highly profitable ($150K+ net): $500,000-$1.5M

From industry analysis: "A small trucking company with a fleet of 5-10 trucks might sell for anywhere between $250,000 to $1 million, depending on factors like the condition of the trucks and the age of the fleet."

10-50 truck operation:

• Net $500K/year: $2M-$4M
• Net $1M/year: $5M-$8M

The harsh reality:

From TruckersReport, one owner trying to sell describes the experience:

"Someone offered $35,000 for a business generating $100,000 annually, which he could earn in three months working." - Volvoslave)))

And the response from experienced operators:

"IF anyone offered you $35K, take it. The value for a two year old authority isn't close to that." - Ridgeline

What Makes a Trucking Business Sellable

Sellable Business Characteristics

1. Consistent profitability

• 3+ years of positive net income
• EBITDA of $100K+ annually
• Clean financial records (QuickBooks, audited statements)

Unsellable: Inconsistent profits, negative years, messy books

2. Customer contracts (not 100% spot market)

• 60-80% revenue from dedicated customers
• Contracts transferable to new owner
• Direct shipper relationships (not just brokers)

Unsellable: 100% spot market, no customer relationships

3. Good equipment condition

• Trucks under 5 years old or well-maintained older trucks
• Low mileage (under 500K miles preferred)
• Maintenance records documented

Unsellable: High-mileage trucks (800K+ miles), deferred maintenance

4. Low owner dependency

• Business runs without you
• Drivers don't quit when you sell
• Systems in place (not all in your head)

Unsellable: "You ARE the business" (you drive, dispatch, manage everything)

5. Clean compliance record

• Good DOT safety rating
• Low CSA scores
• No recent violations or accidents
• Clean insurance claims history

Unsellable: Poor safety rating, high CSA scores, recent violations

6. Transferable authority

• MC authority in good standing
• No pending violations
• Clean inspection history

From industry analysis, there are 16 reasons trucking businesses won't sell, including owner dependency, poor financials, equipment issues, and compliance problems.

Asset-Light vs Asset-Based Value

From industry valuation research: "Asset-light companies (those that lease equipment) receive slightly higher valuations due to lower costs and risks, with buyers showing preference for their ability to quickly adapt to changing market conditions."

Asset-light companies: 6-8x EBITDA Asset-based companies: 4-6x EBITDA (0.5-2x lower)

Why: Buyers don't want old equipment. They value cash flow.

How to Find Buyers

Where to List Trucking Businesses for Sale

Business brokers:

• BizBuySell.com
• LoopNet (for larger companies)
• Industry-specific brokers (trucking M&A specialists)
• Commission: 10-15% of sale price

Direct marketing:

• TruckersReport classifieds
• Industry publications
• LinkedIn (target trucking entrepreneurs)
• Word of mouth (tell other fleet owners)

Business broker pros:

• They find qualified buyers
• Handle paperwork
• Negotiate on your behalf

Business broker cons:

• 10-15% commission (on $500K sale = $50K-$75K)
• 3-12 months to sell
• May push you to lower price

DIY pros:

• Save commission
• Control the process

DIY cons:

• Time-consuming (fielding tire-kickers)
• Legal complexity (need attorney anyway)
• Harder to find qualified buyers

Who Buys Small Trucking Companies

Buyer types:

1. Current owner-operators looking to expand

• Most common buyer
• Looking for 3-10 truck operations
• Want existing customer contracts

2. Company drivers wanting to become fleet owners

• Skip the 1-truck startup phase
• Buy turnkey operation

3. Private equity or consolidators

• Looking for 20+ truck operations
• Rarely interested in under 10 trucks

4. Competitors in your region

• Want to eliminate competition
• Want your customer contracts
• May pay premium for dedicated contracts

From TruckersReport forum:

"Many people wanting to buy authority and MC numbers are brokers or agents for brokers."

Tax Implications of Selling

Depreciation Recapture

If you fully depreciated trucks using Section 179:

Example:

• Truck cost: $150,000
• Depreciation claimed: $150,000 (Section 179, year 1)
• Current truck value: $80,000
• Tax basis: $0

When you sell for $80,000:

• Sale price: $80,000
• Tax basis: $0
• Taxable gain: $80,000
• Ordinary income tax: ~$24,000-$32,000 (30-40% rate)

You don't get capital gains rates on depreciation recapture. It's taxed as ordinary income.

From industry tax guidance: "In an asset sale, the portion of the purchase price allocated to equipment can trigger depreciation recapture taxed at ordinary income rates for the seller."

Asset Sale vs Business Sale

Asset sale (more common for small trucking):

• Buyer purchases trucks, equipment, customer contracts
• You keep the legal entity (LLC/corporation)
• Each asset taxed separately (trucks = depreciation recapture, goodwill = capital gains)

Business sale (equity sale):

• Buyer purchases your LLC/corporation
• Takes on all assets AND liabilities
• Simpler for seller (one transaction)

Tax difference: Each structure has advantages based on entity type, deal structure, asset basis, and other factors.

Recommendation: Work with CPA who specializes in business sales. Proper tax planning can save $20,000-$100,000+ on sale.

Capital Gains vs Ordinary Income

Goodwill and customer contracts:

• Taxed at long-term capital gains rates (15-20%)

Equipment (depreciation recapture):

• Taxed at ordinary income rates (22-37%)

How allocation affects your net proceeds:

Example: $500,000 sale price

Allocation A:

• Equipment: $300,000 (ordinary income, 30% tax = $90K tax)
• Goodwill: $200,000 (capital gains, 20% tax = $40K tax)
• Total tax: $130,000
• Net proceeds: $370,000

Allocation B:

• Equipment: $200,000 (ordinary income, 30% tax = $60K tax)
• Goodwill: $300,000 (capital gains, 20% tax = $60K tax)
• Total tax: $120,000
• Net proceeds: $380,000

$10,000 difference based on allocation alone.

From industry sources: "Sellers who win big invest in transaction tax specialists before closing the deal."

When to Sell vs When to Liquidate

Sell the Business If:

• Net profit $100K+/year consistently
• You have transferable customer contracts
• Equipment is in good condition
• Clean safety record
• Business can operate without you

Expected sale price: 3-6x EBITDA or asset value + 2-4x net profit

Liquidate (Sell Assets, Close Business) If:

• Unprofitable or barely profitable
• No customer contracts
• Old equipment (trucks over 7-10 years)
• Owner-dependent (you are the business)
• Poor safety record

Expected value: Asset value minus 20-40%

From industry analysis:

"When owners realize how little cash they net after federal and state taxes, they sometimes conclude that an orderly liquidation—spreading asset sales over time and managing allocations—delivers a superior outcome."

Why liquidation sometimes beats selling:

• Control timing (sell trucks when market is high)
• No buyer negotiation (sell trucks individually)
• Avoid buyer contingencies
• Can spread sales over 2 tax years (lower tax bracket)

Preparing Your Business for Sale (6-12 Months Before)

Step 1: Clean Up Financials (3-6 months before)

What buyers want to see:

• 3 years of P&L statements
• QuickBooks or equivalent
• Tax returns
• Clean books (no personal expenses mixed with business)

If your books are messy, hire a CPA to clean them up. Cost: $2,000-$5,000. ROI: 5-10x (buyers pay more for clean financials).

Step 2: Document Everything (2-3 months before)

Create:

• Customer list with contract details
• Driver roster with experience/tenure
• Equipment list (VIN, mileage, condition, maintenance history)
• Standard operating procedures
• Vendor/supplier list

Why: Buyers want turnkey. Documentation shows business isn't just "you."

Step 3: Improve Metrics (6-12 months before)

Focus on:

• Increase profit margin (defer non-essential expenses, push for higher rates)
• Reduce owner hours (prove business runs without you)
• Lock in customer contracts (month-to-month becomes 12-month agreements)
• Fix compliance issues (clean up CSA scores, safety rating)

Every $10,000 increase in annual net profit = $30,000-$60,000 higher sale price (at 3-6x multiple).

Step 4: Get Pre-Sale Valuation (2-3 months before)

Hire a business appraiser:

• Cost: $2,000-$5,000
• Provides realistic value estimate
• Helps you set asking price

Red flag: If appraiser says business is worth 2x what you expected, get second opinion.

How FF Dispatch Affects Business Value

If you use dispatch services, buyers want to know: "Can this continue under new ownership?"

What we provide for business sales:

• Transferable service (new owner can continue using us)
• Documented freight relationships (shows business has consistent freight access)
• Settlement history (proves revenue claims)

Why this matters:

Buyer concern: "If I buy this business, will I be able to find freight?"

Our documentation shows:

• Consistent load volume
• Average rates achieved
• Lane specialization
• Freight relationships (transferable)

How this affects valuation: Businesses with documented freight pipelines sell for 10-20% more than spot-market-only operations because buyers see revenue predictability.

Contact: (302) 608-0609 or gia@dispatchff.com Pricing: 6% of gross revenue No long-term contracts

If you're planning to sell in 1-3 years, using dispatch services builds documented freight relationships that increase business value.

Bottom Line

Selling a trucking business is harder and less lucrative than most owners expect.

Realistic valuations (2026):

• 1-3 truck operation: $50,000-$250,000 (mostly truck value)
• 3-10 truck operation: $250,000-$1M (depends on profitability)
• 10+ truck operation: 5-8x EBITDA (if profitable and sellable)

Valuation methods:

• EBITDA multiple: 3-8x (average 5-6x for small fleets)
• Asset-based: Current truck value + goodwill
• Authority alone: $500-$5,000 (nearly worthless without assets/contracts)

What makes businesses sellable:

• Consistent profitability ($100K+ net annually)
• Transferable customer contracts
• Good equipment condition
• Can operate without owner
• Clean compliance record

What makes businesses unsellable:

• Unprofitable or barely profitable
• 100% spot market (no contracts)
• Old equipment or deferred maintenance
• Owner-dependent operations
• Poor safety record

Tax implications:

• Depreciation recapture: Ordinary income tax (30-40%)
• Goodwill: Capital gains tax (15-20%)
• Proper allocation saves $10,000-$100,000+
• Hire transaction tax specialist

When to sell vs liquidate:

• Sell: If profitable, customer contracts, good equipment
• Liquidate: If unprofitable, no contracts, old equipment
• Liquidation sometimes nets more after taxes

Preparation timeline:

• 6-12 months before: Improve metrics, clean financials
• 3-6 months before: Document everything
• 2-3 months before: Get valuation, hire broker
• List and sell: 3-12 months

Finding buyers:

• Business brokers (10-15% commission)
• BizBuySell, LoopNet
• Industry forums and networks
• Direct outreach to competitors

Harsh reality from TruckersReport:

"Someone offered $35,000 for a business generating $100,000 annually." - Volvoslave)))

Response: "IF anyone offered you $35K, take it. The value for a two year old authority isn't close." - Ridgeline

Most owner operators overestimate their business value by 3-5x. Get professional valuation before listing.

Alternative to selling:

• Transition to non-driving owner (hire drivers for all trucks)
• Scale back to 1-2 trucks (sell others, keep working)
• Pass business to family member
• Partner with another operator (you exit gradually)

Many trucking businesses don't sell. Plan for that possibility. Have exit strategy beyond "sell for $1M and retire."

---

Sources:

• Valuation Multiples for a Freight Trucking Company - Peak Business Valuation
• How to Value a Trucking Company - MidMarket Businesses
• What Is A Small Trucking Company Worth? - Arrowfish Consulting
• Trucking Company EBITDA & Valuation Multiples 2025 - First Page Sage
• How to Sell a Trucking Company: Expert Guide to Maximum Value - IRA Empire
• Tax and Other Considerations in Selling or Gifting a Trucking Business - Moss Adams
• Why a Trucking Company Would Shut Down Rather Than Sell - Transportation Tax Consulting
• Selling My Trucking Business - TruckersReport Forum