Hiring a FedEx Route Broker? Make Sure These 10 Boxes Are Checked
Buying and selling FedEx routes can be challenging if you are trying to do everything alone, which is why many individuals will partner with a brokerage company to ensure the transaction goes smoothly. Working with a qualified broker will help to ensure:
- You pay (or receive) an appropriate price for your FedEx routes;
- Fair terms are negotiated for all parties involved; and
- Confidentiality is maintained throughout the entire process.
Because the brokerage industry is vast, and it can be difficult to know exactly what to look for in a qualified FedEx broker. Throughout our 10+ years in FedEx route sales, KR Capital has encountered a broad range of brokers and advisors—from real estate agents to generalist business brokers—all claiming to be the best choice for would-be route owners and sellers.
As you begin your research, don’t be afraid to ask the tough questions before deciding whether or not you want to work with a particular brokerage company. That way, you can make sure your potential broker checks all the right boxes and ultimately determine if they are the best fit for your needs.
Here are 10 things your broker should absolutely be doing in order to earn their fee.
- They know your industry inside and out. Unlike a traditional business sale, there are myriad nuances associated with the successful sale of a FedEx business. For this reason, it is vitally important that your broker understands every step in the FedEx sales process, from staying on top of local and regional market conditions to understanding the intricacies of the FedEx approval process.
- They take the time to understand your specific business before selling it. It seems like common sense, but why work with a broker who doesn’t take the time to learn everything there is to know about your unique route business? This is especially important for FedEx route sellers, because the right brokerage company will know how to position your business for the best price.
- Their sales materials are worthy of your company. You can learn a lot about a broker by the sales and marketing materials they produce. Those materials will be what your brokerage company uses to attract potential buyers for your routes, so be sure they present a high-quality, professional image.
- They can close the deal. Whether you are eager to get your new FedEx route business up and running so you can start making money or you’re ready to sell your business and start the next phase of your life, the last thing you want is to get to the end of the transaction and have the deal fall through. Don’t be afraid to ask prospective brokers for a history of their successes.
- They leave no stone unturned and have buyers who are interested in your industry. Look for a broker that has built an established buyer network of interested parties who are looking specifically for a FedEx route business. If they have done their job correctly, those buyers will be financially screened and sorted geographically to ensure the transaction can progress seamlessly.
- They understand your overall situation. Just like every buyer and seller, every FedEx route business is unique. A good broker will want to know every little detail about your business, from its financial history and the number of drivers you employ to your vehicle fleet and the condition of your trucks and vans.
- They manage your expectations. Be wary if a brokerage company promises you the moon right off the bat. The FedEx sale process is highly complex, so they should know enough to walk you through a sales process overview and give you an honest and accurate timeline as to how long things will take. Most FedEx route operations are sold within three to six months; here are some things you can do to get your business ready to sell.
- They are relentless and roll up their sleeves until the deal is done. If you don’t feel like your broker is putting in 100% all day, every day to get you the best deal and ensure the process goes as smoothly as possible, they may not be the right brokerage company for you. Take the time to find someone you can trust with your business and your livelihood, and you won’t be disappointed.
- They properly prepare you for buyer interactions. There are many capable brokerage companies out there that know how to broker a sale. However, just as important is how they prepare you (and your business) for what to expect when meeting with prospective buyers or sellers.
- They understand which deal points to fight for. Here’s where experience makes all the difference. A seasoned broker will have a keen understanding of which deal points are worth fighting for and which can be conceded. This is critically important to moving the sales process along and avoiding delays.
As you evaluate your business and contemplate the idea of selling your routes, make sure your brokerage company has a list of references and is well-equipped to help you get the most out of your route sale. While we strongly believe we are the best FedEx brokers in the business, KR Capital is more than happy to be a resource for you, regardless of which broker you choose to work with. Contact us today to learn more.