A Full-Service Approach
Our suite of services has been refined over many years to meet the needs of current and future FedEx1 contractors.
We offer a full-service approach that is specifically tailored to each client’s unique goals and objectives. Whether our clients are looking to value routes, buy or sell routes, obtain financing, or navigate the FedEx approval process, we can help.
We have an intimate knowledge of both P&D and linehaul routes and understand the nuances associated with each line of business.
We have a system and solution in place to meet almost any need that might arise during the course of selling your FedEx business.
Multi-tiered Marketing Plan
KR Capital provides a 3-tiered marketing platform for clients.
Proprietary database is sorted and filtered for matching buyer criteria. On average, this yields a targeted buyer list of 1,800+ FedEx-specific buyers who have expressed interest in a similar set of routes in a given location. These buyers are pro-actively contacted by KR Capital to solicit their interest.
Extensive buyer exposure on prominent search engines. Potential buyers searching the internet for different FedEx opportunities will find the KR Capital website among the top search results. This yields an average of 5,500+ visitors per month to the KR Capital page – many of whom are active buyers seeking new opportunities. Clients of KR Capital will have their opportunity posted prominently on the KR Capital Website.
Subscriptions to the top business-for-sale websites. KR Capital maintains memberships to the most popular business-for-sale websites. These websites attract interest from millions of buyers nationwide. KR Capital incurs these membership costs on behalf of its clients to maximize the business’ exposure to as many buyers as possible.
Comprehensive Route Valuation
Our valuation takes into account current and historical financial statements, growth projections, local market conditions, vehicle fleet, management and operational considerations, and more. Each valuation is supported by current market comps, lender input, vehicle appraisals and more.
Best-in-Class Offering Memorandum
KR Capital has an intimate understanding of what information buyers and their lenders will ultimately look for. The offering memorandums compiled by KR Capital include compelling value propositions for the business, a detailed accounting of the financial performance, fleet information, asking price rationale and support, and more. This information is packaged into a highly professional presentation and ultimately shared with interested buyers who have signed a confidentiality agreement and demonstrated financial capability.
A large part of the FedEx sales process is ensuring the proper documentation is in place. Clients of KR Capital gain access to sample Confidentiality Agreements, Term Sheets, Purchase Agreements, FedEx business plans (RFIs), employee handbooks, safety manuals, and more. These documents are offered to clients as samples only and should not be construed as legal or tax advice. Buyer and sellers working with KR Capital are strongly encouraged to seek independent and legal tax counsel.
Due Diligence Support
Once an offer is made, the buyer will likely request a due diligence period. With over $150 million in completed FedEx transactions, we are intimately familiar with the information that is typically requested in the due diligence phase. We work with our clients to pro-actively prepare the anticipated due diligence information so as to compress the sales cycle when working with a buyer.
Securing financing for FedEx routes requires the right lending partner. This is largely due to the fact that the value of FedEx routes is made up of mostly goodwill, with a smaller percentage being attributed to the asset value (typically the vehicle fleet). As such, the lender will need to have a strong understanding of the FedEx business model and be comfortable lending on a business with fewer physical assets. We have developed a network of FedEx-specific lenders to aid in the financing of our transactions. We intimately understand the documents required to procure the loan, the terms and loan covenants that can be expected, etc. KR Capital pro-actively prepares its clients to become pre-approved for bank financing, while interested buyers receive a step-by-step roadmap to procure their loan. This, in turn, allows our clients to work with a larger pool of buyers who might need bank financing to complete the sale.
FedEx Approval Process
Buyers purchasing FedEx routes will ultimately be required to navigate a detailed FedEx approval process. This process can take upwards of 30-60 days and must be managed very closely. Our firm works with buyers to properly prepare them for their approval. This includes providing buyers a detailed checklist of the documentation they will be expected to provide, what to expect in the initial FedEx meeting, transferring vehicles to the new corporation, etc.