Do I Really Need a Broker to Sell FedEx Routes?

The decision to sell your FedEx routes was probably one that you spent a good amount of time thinking about. Is it the right time to sell? Will my business be attractive to potential buyers? How will I know if I am getting a good price? What should I do to get started? 

The good news is that all of these questions can be answered easily by a qualified FedEx broker. And, working with a broker throughout the entire sales process will ensure that fair terms are negotiated for all parties involved, you receive a proper price for your routes, and confidentiality is maintained throughout the entire process.

Selling your FedEx routes is easier with the right partner. 

The sale of your FedEx route business is a significant financial transaction and one that should be carefully managed by a professional broker. Unlike a traditional business sale, there are myriad nuances associated with the sale of FedEx routes, and a qualified broker will help you to navigate the process successfully and avoid any pitfalls or mistakes.

For example, both the routes and the accompanying vehicle fleet must be valued appropriately in order to ensure the contractor receives a fair market value for the business. This begins with a deep understanding of settlement statements, vehicle values, financial statements, local and regional market conditions, and more. At KR Capital, we analyze each of these components in great detail in order to arrive at a realistic value range for your business. During the course of our analysis, we will identify areas within the operation that may hinder the sale of your routes. By pinpointing these areas for improvement, we are able to create a stronger value proposition and build the case for a higher price for your business.

KR Capital can match you with the right buyer, at the right time. 

Once your business is prepared for sale, our team approaches the buyer market in several different ways. Our exclusive buyer network extends nationwide and represents thousands of buyers who have specifically expressed an interest in buying FedEx routes. The majority of these buyers have been financially screened, sorted geographically, and already have a general understanding of the FedEx business model.

If we have determined that a buyer has a sincere interest in your routes, we ask them to sign a Confidentiality Agreement and provide proof of funds. This qualification process ensures we are working with only qualified buyers. Additionally, this step ensures that the buyer agrees to maintain strict confidentiality and not discuss the details of your particular routes with any outside parties. Following this screening phase, the buyer is allowed access to information about your routes, and our team will set up a meeting to go through any questions both parties may have.

We will also guide you through each step of the sales process. 

Once all questions have been answered, and assuming there is mutual interest in moving forward, KR Capital asks the buyer to submit a Letter of Intent stipulating the terms of the offer. In conjunction with the Letter of Intent, the buyer is also asked to submit a reasonable deposit (held either at a title company or a law firm) to assure the contractor that the buyer has a sincere interest.

From there, we will work with you and your tax representative and/or legal counsel to proactively prepare the due diligence information that the buyer will likely want to review. Having this information compiled ahead of time not only expedites the process but also gives the buyer comfort that the information is accurate and well organized.

Following the due diligence period, our team will work with the buyer and FedEx terminal management to navigate the FedEx approval process. Note: This process can be a timely and frustrating endeavor without an intimate knowledge of how the system works. Buyers must first establish a corporation as well as draft an RFI (business plan) that will ultimately be submitted to FedEx for approval.

As a full-service brokerage firm dedicated exclusively to the sale of FedEx routes, KR Capital is fully equipped to help buyers draft an RFI and in fact has multiple samples on file. This is a huge benefit for contractors who want to sell FedEx routes and are looking to expedite the closing process.

KR Capital can help (even if we’re not the broker you choose). 

As you evaluate your business and contemplate the idea of selling your FedEx routes, make sure the brokerage company you choose has a list of references and is well-equipped to help you get the most out of your route sale. While we strongly believe we are the best FedEx brokers in the business, KR Capital is more than happy to be a resource for you when the time comes to sell FedEx routes, regardless of which broker you opt to work with. Contact us today to learn more.