Midwest 3PL Fulfillment Company Sold for $2M After 3 LOIs
Rachel Horner
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2 min read
About the Business
Industry: Logistics – E-commerce Fulfillment (3PL) Warehouse
Location: Midwest
Size: $4.5M–$5M in annual revenue, $400K–$500K in cash flow
Sale price: $2,000,000
Listing to signed LOI: 41 days
Signed LOI to close: 200 days
The Challenge: Two Partners Ready to Move On
The two partners had self-funded the company's growth, and both wanted to exit after a transition. The founder had other ventures he wanted to pursue.
41 Days to a Signed LOI: Holding Out for a Funded Buyer
What happened at every stage
Valuation: Baton valued the business on $400K–$500K in adjusted cash flow.
Buyer Outreach: 175+ buyers viewed the listing and 65+ opened the data room. 19 buyers requested introductions, and the owners met 9 of them in about five weeks.
Offer Selection and Negotiation Support: The listing drew 4 IOIs and 3 LOIs within six weeks, and Baton sent a process letter to push bidders to their best terms. When one bidder couldn't show proof of funds, the Baton advisor recommended against granting exclusivity, and the owners signed with a fully funded SBA buyer 41 days after launch.
Diligence and Closing Support: The Baton advisor ran weekly diligence and financing calls from the LOI onward. The deal closed 200 days after the LOI with an SBA 7(a) loan.
The Results
The buyer is an operator-led team with more than 20 years of supply-chain leadership at several Fortune 50 companies, building a technology-driven 3PL platform for the long term. Through Baton's competitive process, the business:
Sold for $2,000,000, $500,000 above the owners' own estimate of its value
Drew 3 LOIs and 4 IOIs within six weeks of launch
Closed with $1,600,000 in cash at closing (an SBA 7(a) loan plus buyer equity) and a $400,000 seller note
What's next for the owners?
Both partners planned to exit after the transition, and the founder had other business ideas to pursue.
Advice and Lessons for Future Sellers
Check proof of funds before exclusivity. It kept the owners from locking up with a buyer who wasn't ready.
Meet buyers early and often. Nine buyer meetings in five weeks led to three LOIs.
Weigh certainty alongside price. An SBA-financed buyer with a vetted backup lender gave the owners a clear path to close.