This Courier / Last-Mile Delivery at $1.7M Has Promise, But Needs Negotiation

Strong margins, fair price, and real cash flow. This is what a solid deal actually looks like.

This is a courier / last-mile delivery business listed at $1.7M, generating $1.7M in annual revenue and $508,735 in seller's discretionary earnings. At a 3.43x cash flow multiple, the asking price sits above the benchmark of 3.20x for courier / last-mile delivery businesses. The profit margin is 29%, above the 11% industry average.

We ran this deal through the DealScore Pro Bulletproof Calculator to see how it holds up across all five scoring criteria. Here is the full breakdown.

Deal Snapshot

Key Metrics
Industry
Courier / Last-Mile Delivery
Asking Price
$1.7M
Revenue
$1.7M
Cash Flow (SDE)
$508,735
Cash Flow Multiple
3.43x
Industry avg: 3.20x
Profit Margin
29%
Industry avg: 11%

The deal snapshot tells a clean story. Revenue of $1.7M with a 29% margin means the business is generating real cash flow, not just top-line vanity. The 3.43x multiple is fair, right in line with the industry average.

Financing Overview

Using the standard 80/10/10 SBA deal structure (80% SBA 7(a) loan, 10% seller financing, 10% buyer down payment), here is what this acquisition looks like when financed.

SBA Financing Breakdown
Total Acquisition Cost
$1.8M
Includes SBA guaranty fee + closing costs
Down Payment (10%)
$174,500
SBA Loan (80%)
$1.4M
10-year term, ~10.5% rate
Seller Note (10%)
$174,500
Typically 2-year standby, then 5-year amort
Annual Debt Service
$266,526
Post-Debt Owner Cash Flow
$242,209 / year
DSCR
1.91x
Bulletproof minimum: 2.0x
Stress Test (20% Revenue Drop)
Passes
Still covers debt at $1.4M revenue

Why the Numbers Matter

The headline number most buyers fixate on is the asking price. But the asking price alone tells you almost nothing about whether a deal is worth doing. What matters is what happens after you finance it.

The post-debt cash flow of $242,209 per year is the real number. That is what you take home after every loan payment, every month, for the life of the loan. On a $174,500 cash investment, that is a strong return, and it is well above the $100K minimum threshold that the Bulletproof standard requires.

The DSCR of 1.91x means the business generates $1.91 for every $1 of annual debt payment. SBA lenders require a minimum of 1.25x. The Bulletproof standard requires 2.0x. This deal clears the bank minimum but falls short of the Bulletproof target, leaving you with a thinner safety margin.

The stress test is where many deals that look good on paper fall apart. We model a 20% drop in revenue and check whether the business can still cover all debt obligations. This deal passes. Even at $1.4M in revenue (down from $1.7M), the cash flow still services the debt. That is the kind of resilience you want in a financed acquisition.

Industry Context

📈 How This Deal Compares to the Courier / Last-Mile Delivery Industry

Courier / Last-Mile Delivery defaults above the all-industry average, at 6.8% against 5.1%. Margins in the space leave less absorption room when revenue moves, so lenders weigh the coverage figures more heavily than they would elsewhere.

Multiple
3.43x
Avg: 3.20x
Margin
29%
Avg: 11%
Default Rate
6.8%
All industries: 5.1%

The courier / last-mile delivery industry carries a higher-than-average SBA default rate at 6.8%, compared to the all-industry average of 5.1%. Combined with a deal that performs well on the fundamentals, this is the profile lenders like to fund.

Strengths and Risks

✓ What Works

  • Strong post-debt cash flow of $242,209 per year
  • Adequate working capital reserves
  • Survives a 20% revenue decline stress test

⚠ Watch Out For

  • DSCR of 1.91x is below the safety threshold
  • Purchase multiple of 3.43x is near the Bulletproof threshold
  • Key-person risk: verify the current owner's role in daily operations
  • Lease terms and renewal risk

Who This Deal Is For

Best fit for:

Owner-operators with industry experience or management background who want a business that cash flows from day one.

First-time buyers looking for a straightforward acquisition with solid fundamentals.

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7.2 / 10
Bulletproof Verdict
This deal scores 7.2 out of 10 on the Bulletproof standard. Post-debt cash flow of $242,209 per year gives the buyer strong take-home from day one. Operational risks should be validated in due diligence.

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Frequently Asked Questions

Is $1.7M a fair price for a courier / last-mile delivery business?

At 3.43x seller's discretionary earnings, this asking price is right at the benchmark multiple of 3.20x for courier / last-mile delivery businesses. Deals priced below 2.70x are generally considered favorable for buyers, while anything above 3.90x starts to look expensive.

What is a good profit margin for a courier / last-mile delivery business?

The benchmark profit margin for courier / last-mile delivery businesses is approximately 11%. This listing operates at a 29% margin, which is above average and suggests the business is managing costs effectively. Margins above 10% are generally considered healthy at this scale.

Can I buy a courier / last-mile delivery business with an SBA loan?

Yes. Courier / Last-Mile Delivery businesses are commonly financed through SBA 7(a) loans using an 80/10/10 structure: 80% SBA loan, 10% seller financing, and 10% buyer down payment. For this $1.7M deal, that means approximately $174,500 in cash at closing. SBA lenders require a minimum DSCR of 1.25x, but conservative buyers target 2.0x or higher. This deal's 1.91x DSCR clears the bank minimum but falls short of the conservative target.

How much do courier / last-mile delivery business owners actually make?

Owner earnings vary widely based on revenue, pricing, and operational involvement. This courier / last-mile delivery business generates $508,735 in seller's discretionary earnings (SDE) before debt service. After SBA financing under the 80/10/10 structure, the buyer would take home approximately $242,209 per year. That post-debt figure is the number that actually matters for a financed acquisition, because it reflects what ends up in your pocket after every loan payment is made.