Trucking Due Diligence Checklist

1. Operating Authority & Regulatory Compliance

A trucking acquisition lives or dies by its ability to keep moving freight legally. Verify that the carrier can operate without interruption and that no hidden violations are waiting to surface.

• DOT number and MC authority: Confirm active operating authority with the FMCSA. Check for pending revocation, conditional status, or unresolved consent decrees.
• DOT safety rating: Review the carrier's current safety rating (Satisfactory, Conditional, or Unsatisfactory). A Conditional rating can increase insurance costs and scare customers away.
• CSA scores and BASICs: Pull the carrier's Compliance, Safety, Accountability percentile scores. High scores in Unsafe Driving, Hours-of-Service, or Maintenance BASICs are red flags.
• Insurance coverage: Verify liability, cargo, and workers' compensation policies, limits, carriers, and renewal dates. Ask whether claims history has pushed premiums above market.
• Unified Carrier Registration (UCR): Confirm the carrier is current and that fees are paid for the applicable fleet size.

2. Fleet Maintenance & Equipment Records

In a trucking business for sale, the fleet is both the production line and the balance sheet. Maintenance discipline is one of the best predictors of future capex and downtime.

• Vehicle inventory: Obtain a complete list of tractors, trailers, and material-handling equipment with VINs, model years, mileage, and engine hours.
• Maintenance logs: Review preventative maintenance records, DOT inspection reports, and out-of-service rates. Look for consistent intervals and documented repairs.
• Tractor age and condition: An average tractor age under four to five years usually signals lower near-term capex. Older fleets may require a replacement reserve in your valuation.
• Trailer specifications: Confirm dry van, refrigerated, flatbed, or specialized counts. Refrigerated trailers carry higher replacement costs and maintenance complexity.
• Equipment liens and titles: Verify clear title on owned equipment and understand the terms of any financed or leased assets.

3. Fuel Tax Compliance (IFTA & IRP)

Multi-state carriers generate tax exposure that a buyer inherits. Make sure fuel tax and mileage reporting are clean before closing.

• IFTA license and decals: Confirm the carrier holds a current International Fuel Tax Agreement license and that decals are displayed on qualified vehicles.
• Quarterly IFTA returns: Review the last three to four years of returns for accuracy, late filings, and unpaid balances. Audits are common and penalties add up quickly.
• IRP cab card and apportioned plates: Verify that vehicles are properly registered under the International Registration Plan for every jurisdiction in which they operate.
• Fuel card and purchasing records: Match fuel purchases to IFTA filings and route records. Discrepancies can indicate poor recordkeeping or worse.

4. Cold-Chain & Refrigerated Equipment Certification

For logistics companies handling temperature-controlled freight, cold-chain integrity is a compliance and liability issue. Buyers should treat refrigerated assets as a separate diligence workstream.

• Reefer unit service history: Obtain maintenance records for every refrigerated trailer or truck unit, including compressor, evaporator, and temperature-control repairs.
• Temperature monitoring: Confirm whether the carrier uses continuous temperature-logging technology and how records are retained for customers and regulators.
• FSMA compliance: For food-grade refrigerated transport, verify compliance with the FDA Food Safety Modernization Act Sanitary Transportation rule, including training and recordkeeping.
• Customer audit history: Large food and pharmaceutical shippers perform their own facility and fleet audits. Review recent audit results and corrective actions.

5. Driver & Workforce Due Diligence

A carrier's drivers are its most important — and often most constrained — asset. Driver quality and retention directly affect insurance, service levels, and valuation.

• Driver roster and qualifications: Confirm valid CDLs, medical certificates, and hazmat endorsements where applicable. Spot-check driver qualification files for completeness.
• Turnover rate: Compare the carrier's driver turnover to industry benchmarks. Sub-industry turnover is a meaningful value driver.
• Payroll and contractor classification:Determine how many drivers are employees versus independent owner-operators. Misclassification is a growing enforcement risk.
• Union or collective bargaining: Identify any union contracts, pension obligations, or work-rule restrictions.

6. Customer Contracts & Revenue Quality

Not all revenue is equal. Concentrated customers, spot-market exposure, and handshake agreements all change the risk profile of a logistics company for sale.

• Customer concentration: Request revenue by customer for the last two to three years. A top customer above 25% of revenue usually reduces valuation multiples.
• Contract terms: Review contracted rates, volume commitments, fuel-surcharge mechanisms, and termination provisions.
• Rate per mile and lane economics: Analyze whether rates cover operating costs with adequate margin, and whether lanes are balanced or rely heavily on deadhead.
• Accounts receivable aging: Look for overdue receivables, disputed invoices, or customer credit issues.

7. Financial & Tax Diligence

Normalize the financials to understand true earning power. Small carriers often blend personal and business expenses, so add-backs require documentation.

• Adjusted EBITDA: Recast earnings by removing one-time items, owner add-backs, and non-operating expenses. Require supporting documentation for every add-back.
• Fuel and maintenance trends: Compare these costs as a percentage of revenue over time. Rising ratios may signal fleet aging or pricing pressure.
• Working capital: Understand typical accounts receivable, payable, and fuel-card cycles. Working-capital needs often surprise first-time buyers.
• Tax returns: Cross-check filed tax returns against internal financials for consistency.

8. Technology, Dispatch & Warehouse Systems

Modern transportation platforms run on software. Evaluate whether the tech stack supports growth or will need replacement.

• Transportation management system (TMS): Review the dispatch, routing, and customer-portal platforms in use. Proprietary systems can be a competitive advantage.
• ELD compliance: Confirm that electronic logging devices are FMCSA-registered and data is retained properly.
• Warehouse management: For carriers with warehousing, review inventory tracking, cold-storage monitoring, and customer reporting capabilities.
• Data ownership: Clarify who owns customer data, route history, and system source code if the platform is custom-built.

9. Real Estate & Facilities

If the logistics company for sale includes industrial real estate, treat it as a separate asset class within the transaction.

• Title and environmental: Order a title policy and Phase I environmental assessment. Trucking yards can carry petroleum and solvent exposure.
• Zoning and use: Confirm the property is properly zoned for trucking, warehousing, and any cold-chain operations.
• Lease vs. own: Determine whether the real estate is owned, leased, or subject to a sale-leaseback. Each structure changes valuation and future cash flow.
• Maintenance and capex: Assess the condition of docks, pavement, reefer plug infrastructure, and warehouse systems.

Applying This Checklist to the KLMB Opportunity

KLMB Transportation is a fully integrated Midwest transportation and logistics platform offered as a single turnkey acquisition. The opportunity includes the operating business, fleet and equipment, proprietary logistics software, and industrial real estate — giving buyers a complete platform rather than a partial asset purchase.

Buyers evaluating this opportunity can use the checklist above to confirm DOT standing, fleet condition, IFTA compliance, cold-chain certification, and earnings quality as part of their diligence process.

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