Updated Buyer Multiples
In an effort to keep buyers and sellers of FedEx routes up-to-date on the latest valuation metrics, we have compiled a report which reflects the most recent sales data that we have available.
The attached report (taken from BizBuySell) shows sales data from recent FedEx route transactions across the country. The information includes data from routes which reported seller’s discretionary earnings (SDE) of $200,000-$400,000. We have used the data contained in this report to determine an average sales multiple for routes across the country. This is done by dividing the sales price by the earnings to arrive at an earnings multiple. As of 2/6/2015, the average multiple for routes generating between $200-400k in seller’s discretionary cash flow was approximately 2.785. This is very much in line with our experience and what we have seen in the market.
For additional information on FedEx route valuations, please contact us.
