When to Tell Employees You Plan to Sell Your Route Business
Owning a FedEx route business is both lucrative and personally rewarding. However, as with any business, there may come a time when you are ready to sell your FedEx routes and move on to the next phase in your life.
Over the years, as your enterprise has grown, your team has likely grown as well. You may have added more delivery drivers, especially if you expanded your coverage area, and you may have hired administrative staff members to help with day-to-day operations. All of this is to say that selling your FedEx route business impacts more than just you, and telling your employees will be a critical step in the process—but getting the timing right is important.
First things first: It’s important to understand the FedEx route sales process.
FedEx route sales involve multiple steps and typically take between three and six months to complete. Whether you have chosen to sell your routes because you want to retire or relocate, or simply because your interests have changed, the first step is finding an experienced brokerage firm to ensure the process goes as quickly and as smoothly as possible.
The right FedEx broker will help you compile the necessary documentation so that a market valuation can be performed for your routes. They will guide you through the process of collecting financial statements, identifying the value components of your business, and organizing all of your vehicle and operational information. The end result is a “route package” that potential buyers can evaluate to determine whether or not they want to purchase your FedEx route business.
From there, an engagement agreement is signed, buyers are solicited, and interested buyers can submit a letter of intent. At this stage, you (the seller) will provide the necessary due diligence items so that a purchase agreement can be drafted. After a review and edit period, the purchase agreement is signed, the buyer will submit an RFI (business plan) to FedEx, and, upon approval, the sale is closed. Here’s what happens next.
Your best bet is to wait until after the closing to tell your employees.
Because any number of issues may arise that could delay or impede the sale of your FedEx routes, it is best to keep the sale confidential until everything is set in stone. That said, avoid notifying your team before the closing occurs.
If your drivers and other staff members find out you may be selling prior to the actual closing, they may panic and look for employment elsewhere. This could negatively impact your FedEx business valuation because potential buyers are looking for route businesses with strong, reliable teams.
More questions about selling your FedEx routes? Contact KR Capital today.
As the leading FedEx brokerage firm in the nation, we have the expertise and the experience you need to help you determine how much your routes are worth, what the current market conditions are, and how to sell your FedEx routes quickly and for the highest value. Contact us today at (503) 664-0753, or fill out our online form and a member of our team will reach out to you shortly.