Transportation, Logistics & Distribution · Buyer guide
Buying a 3PL & Warehousing business
Published · Reviewed by The Diligence Standard Team · Updated
a 3PL & Warehousing business can look attractive on headline earnings while business-specific operating, compliance, people or transferability risks materially change what a buyer actually owns.
How the business works
Contracted customers, storage/handling mix, labor productivity, facility utilization, technology and working-capital requirements drive value.
Risks to test
- Customer concentration
- Lease/facility constraints
- Labor volatility
- WMS/system dependence
- Underpriced contracts
- Inventory/custody liability
Evidence to request and reconcile
- Customer contracts
- Revenue by account/service
- Warehouse utilization
- Labor productivity
- Lease/facility
- Claims/insurance/WMS data
Decision questions
- Which customer contracts can terminate?
- What accounts are underpriced?
- How full is the warehouse?
- What system is critical?
- What liability exists for customer inventory?