Getting Ready to Sell Your FedEx Routes? A Quick Checklist
Ready to sell your FedEx routes and move on? Before searching for potential buyers, consult this FedEx sale checklist. Here, you will find important tasks and documentation that are essential for a smooth transaction.
Furthermore, by considering this handy list, you can increase your chances of finding the best buyer for your routes.
Understand Your Reasons
First, ask yourself: Why do you want to sell your FedEx routes? There isn’t a right or wrong answer, but getting clear on your reasons will help you move forward with confidence. It’s also likely that buyers will ask this question, so it’s wise to have a steadfast answer in mind.
Prepare Your Financial Records
Make sure your financial records are in order so buyers can clearly understand the business’ profitability and resulting valuation. Properly preparing your financials ahead of the sale will ensure you are familiar with your business’ financial performance and shed light on any problem areas that may need to be addressed during a due diligence period.
According to our seller due diligence list, financial items frequently requested by buyers include:
- Bank statements for previous year and any YTD activity
- 3 years corporate tax returns
- 3 years of profit and loss statements
- Current YTD profit and loss statement
- Current balance sheet
- Asset list
- Payroll reports
- Review of all applicable insurance policies (vehicle, workman’s comp, health, etc.)
- Copies of any leases and loans, including stockholder loans and notes payable
- Copies of all vehicle maintenance reports
- Last 12 months of FedEx settlement statements
If you’re unsure how to prepare certain items, contact KR Capital for guidance. Our firm can work with your financial, accounting, and legal advisors to prepare the required paperwork.
Evaluate Your Profits
As you gather your financial records, carefully assess your expenses and resulting profits. As a seller, you will need to demonstrate how profitable the business is and support any expense “add backs” that may be proposed. These might include discretionary expenses such as personal fuel and travel. It will also include non-recurring expenses that a buyer will not incur when taking over the business. Your business’ performance will determine the valuation of your business, as well as the interest of buyers. A buyer, after all, wants to know that they are purchasing a business that is lucrative and successful.
Sell Your FedEx Routes With KR Capital Today
If you’re thinking about selling your FedEx routes, contact KR Capital. With our extensive knowledge of the transfer process, we can identify what you need to ensure an efficient transaction. Our firm can also provide a FedEx transition checklist once the buyer is ready for FedEx approval.