What it costs to buy a transport business in Australia
Around sixty-five truck and transport businesses are listed for sale in Australia at any time, from a single rig with a set of runs to logistics companies turning over millions. The price gap comes down to one question: are you buying trucks, or contracts?
What transport businesses sell for
| Recent listings | Asking price |
|---|---|
| 12T curtain-sider with established Sydney metro runs | $85,000 |
| Milk run, six nights a week, $2,500+ per week secured | $140,000 |
| Truck freight operations, Melbourne, Brisbane, Sydney | $140,000 to $940,000 |
| Refrigerated and general transport, Australian owned | $600,000 plus vehicles at valuation |
| Fresh produce supply chain, Tully to Cairns | $850,000 |
| Established logistics companies | $1.2m to $2.3m |
You are buying the contracts, not the trucks
Trucks are the easy part. There is a deep second-hand market, lenders know it cold, and you can replace a prime mover in a fortnight. What you cannot replace quickly is a run that has been serviced for eleven years by the person selling it to you.
So the diligence is on the work. How long has each contract run, is it in writing, is it assignable to a new owner, and does the customer know the business is being sold. A listing describing income as secure without a transferable agreement behind it is describing a relationship, and relationships do not always transfer with the keys.
Read the fleet like a lender would
Note where a listing says "plus vehicles at valuation". That structure separates the goodwill from the fleet and it is usually the honest way to price a transport business, because the two are worth different things to different buyers.
Age, hours and make all decide what the fleet is worth and how long a lender will write against it. Mainstream makes with strong resale attract the best terms. A fleet at the end of its life is a capital bill arriving shortly after settlement, so price the replacements into the deal rather than discovering them. Our guides to Kenworth prices and owner-operator truck finance cover the fleet side.
Financing a transport acquisition
These deals usually split cleanly. The fleet funds as asset finance against the trucks themselves, over two to seven years, and it is the cheapest money in the deal because the security is real and liquid. The goodwill and contracts fund as business acquisition lending, which wants property security or a deposit behind it.
Transport also runs lumpy cash flow between invoices, so it is worth arranging a working capital facility at the same time rather than after the first tight month. See truck finance and cashflow finance.
This is general information only and not financial, credit, or tax advice. Prices are indicative market listings, not Ventas figures, and move with the market. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.
Frequently asked questions
How much does a transport business cost in Australia?
A single truck with established runs starts around $85,000, milk runs around $140,000, and freight operations run $140,000 to $940,000. Established logistics companies list between $1.2m and $2.3m.
What should I check before buying a transport business?
The contracts. How long each has run, whether it is in writing, whether it is assignable to a new owner, and whether the customer knows the business is selling. Income described as secure without a transferable agreement is a relationship, not an asset.
What does 'plus vehicles at valuation' mean?
The asking price covers the business and goodwill, and the fleet is valued and paid for separately. It is usually the honest way to price a transport business, because goodwill and trucks are worth different things to different buyers.
How is a transport business purchase financed?
Usually in two parts. The fleet funds as asset finance against the trucks over two to seven years, which is the cheapest money in the deal. Goodwill and contracts fund as business acquisition lending, which wants property or a deposit.
Get your number from the lender panel
The figures above are indicative. Tell us what you are buying and we will come back with the real rate and repayment, usually within a day. No upfront fees and no credit check to get a quote.
Licence, freehold and funding, read together
Tell us the LPO and whether freehold is included and we will structure it, usually within a day.
This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.