What should I ask about a courier company’s biggest shipping clients?

Request a breakdown of revenue by customer, over several periods, and look at how heavy the top few are. If one shipper drives a big share of volume, that shipper has leverage and can negotiate hard or switch. Ask how those accounts were won, how long they have lasted, and whether the volume has grown, shrunk or become seasonal.

Read the agreements, if any. Look for the term, how prices can change, service levels and penalties, and what happens on a change of ownership. Many courier relationships run on habit, not paper. If so, ask what keeps those clients loyal: a driver they trust, a quick pickup time, or a rate that a rival could match.

Ask also about the data. Courier work involves parcels with names, addresses and sometimes sensitive contents, so find out how the company protects that information and what it must do if a breach occurs. Ask your lawyer what obligations come with the business. And ask the seller to arrange a call with key clients before closing. Ask, finally, what happened the last time a big client left, and how long it took the company to replace that volume.

Key takeaways

• Get revenue by customer and see how concentrated it is.
• Read contracts for term, pricing changes and transfer rules.
• Ask why each large client stays: price, speed or driver.
• Ask how customer and parcel data is protected.