Selling Your FedEx Routes Is Easier than You Think
Being a FedEx contractor keeps you pretty busy. But what about when you’re ready to sell your FedEx routes? Navigating the sales process while still focusing on the day-to-day tasks of running your business can seem like a daunting task, but working with an experienced FedEx broker can make all the difference.
What is the value of working with a broker?
Selling your FedEx route business is a significant financial transaction. In the same way that you hire a professional to do your taxes or take your car to the dealership for maintenance and repairs, working with a dedicated FedEx brokerage firm will ensure you have the most qualified person (or team) for the job—one who understands the countless nuances involved with selling FedEx routes.
For example, both your routes and your vehicle fleet must be valued appropriately to ensure you receive a fair market value for your business. This begins with a deep understanding of vehicle values, financial statements, local and regional market conditions, and many other factors. A seasoned broker will analyze each of these components in detail in order to arrive at a realistic value range. In doing so, they will also identify areas for improvement. Addressing any issues and making the necessary changes will help you create a stronger value proposition and build the case for a higher price for your business.
Once the business is ready to sell, then what?
Trying to find the right buyer and sell your FedEx routes on your own is both time consuming and potentially risky. If you don’t know how to properly market your business to potential buyers, you may end up selling your routes for less than they are worth. In addition, it is easy to feel confused or overwhelmed by the FedEx sales process and the many documents required to sell FedEx routes. Partnering with a qualified broker will ensure you find the right buyer and get the best possible price for your route business.
Here at KR Capital, our team approaches the buyer market in several different ways. Our proprietary buyer network extends nationwide and represents thousands of buyers who have specifically expressed an interest in buying FedEx routes. The majority of these buyers have been financially screened, sorted geographically, and already have a general understanding of the FedEx business model.
Once we have determined that a buyer has a sincere interest in purchasing your routes, we will ask them to sign a confidentiality agreement and provide proof of funds. This qualification process ensures not only that buyers are qualified but that they have agreed to our strict confidentiality policy and will not discuss the details of the FedEx opportunity with any outside parties. Following this screening phase, the buyer is provided with information about your business and a meeting is scheduled to address any questions they may have.
The next step is getting the sales process started.
Once all questions have been answered, and assuming there is mutual interest in moving forward, the buyer is asked to submit a Letter of Intent which will stipulate the terms of the offer. In conjunction with the Letter of Intent, the buyer is also asked to submit a reasonable deposit to ensure their interest and grant them exclusivity during the due diligence period.
Following the due diligence period, KR Capital will work with the buyer and FedEx terminal management to navigate the multi-step FedEx approval process so you can continue to focus on your business. In general, the approval process takes about 30 to 60 days, so you definitely want your hands free, so to speak, to continue running your business until the sale is complete.
Overall, an experienced broker can help you sell your route business faster, secure a premium price for your routes, maintain confidentiality throughout the process, and ensure a smooth transaction from start to finish.
Get started today with a free route valuation.
If you are ready to sell your FedEx routes and interested in finding out how much they are worth, KR Capital is a partner you can trust. Our comprehensive valuation process 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, and vehicle appraisals to help you determine exactly what your routes are worth.
Fill out our brief Seller Info Request form to help us get to know your route business, and a member of our team will contact you shortly to arrange a call.