It’s a question we receive almost daily. FedEx contractors contemplating the sale of their routes often first want to understand the timeline that goes along with a successful sale. The process of selling a set of FedEx routes has a wide number of variables that contribute to the timeline – both controllable and non-controllable.
Some of the controllable factors include:
- Proper preparation of financial materials
- Pro-actively compiling due diligence information that a prospective buyer will likely want to review
- Identifying legal and tax counsel to prepare purchase and sale documents
- Assisting the new buyer in preparing for FedEx approval. This includes drafting the RFI business plan, forming new corporation, etc.
Some of the non-controllable factors include:
- FedEx approval timeline
- Time of year sale is taking place (FedEx often will not approve route transfers during peak season so buyer and seller may have to wait until January to close the sale)
- Financing contingencies and timeline for buyers working with a bank
As brokers of FedEx routes, our job is to properly prepare and market FedEx routes in order to identify a buyer as quickly as possible, while also securing the highest price possible. To this end, we focus on those factors that are controllable, and prepare for those factors that are non-controllable. We took inventory of a number of our transactions over the last couple years and identified the time it took for our firm to secure a successful offer.
The chart below summarizes 42 recent FedEx transactions. The vertical axis identifies the number of transactions, while the horizontal axis represents the number of weeks it took to receive an acceptable offer. As previously mentioned, each transaction is quite unique and there are a number of factors that contribute to the timeline of each transaction. With that said, here is the data…