Selling Your Route Business? Highly Trained Drivers May Attract More Buyers
“Training is the linchpin to ensure truckers are safe and positive examples of the companies they represent,” said Freightwaves’ Brian Smith in a recent article about what defines a professional truck driver.
Indeed, your highly trained drivers are the lifeblood of your FedEx route business. Not only does their skill and efficiency on the road allow you to stay on schedule and ensure deliveries are completed on time each day, but they are also the “face” of your company because of their daily interaction with customers.
So, it stands to reason that when it comes time to sell your FedEx routes, your team of drivers is one of the things a potential buyer will consider when determining whether or not your business is the right fit.
On average, FedEx P&D route businesses sell for 3-3.5X their free cash flow, while linehaul businesses can sell for upwards of 4X or more. If you do decide to sell your route business, a strong drive team is just one of several factors that will make it more attractive to interested buyers and increase the value of your routes.
What else are prospective buyers looking for?
Buyers will also want to see that your business is profitable and has potential for growth. To show this, you will need to have your books in order. Be prepared to provide key financial documents and forms such as business tax returns and a comprehensive profit and loss (P&L) statement to demonstrate that your business is financially healthy.
Interested buyers will also want to know about your non-driver staff as well as your equipment. Remember, they’re not just purchasing your routes; they’re also taking over management of your company and assuming ownership of your vehicles and all other business assets. Are your employees hardworking and trustworthy? Is your fleet of trucks in good working order and properly maintained? If so, your business will be even more attractive to buyers.
Finally, it is important that your FedEx route business operates efficiently and that there are systems in place to ensure processes such as scheduling, staff and driver training, and day-to-day operations all run smoothly. This will put the buyer at ease and reassure them that the transition will be seamless.
Ready to sell? Start with our Seller Due Diligence List.
Then, contact KR Capital for a comprehensive route valuation.
Because there are countless variables involved with selling a FedEx route business, it is better to work with a reputable brokerage firm than to go it alone. At KR Capital, our team does the complicated work of listing and marketing your routes, locating and vetting potential buyers, and handling all negotiations pertaining to the sale.
In other words, we can save you a lot of the hassle of selling your FedEx routes so you can continue to focus on running a successful business.