What Does the Average FedEx Route Business Sell For?
As a FedEx Independent Service Provider (ISP), you have enjoyed the freedom and flexibility that comes with running your own business. Now, because you want to retire, relocate, or simply follow a different path, you’re ready to sell your FedEx routes—but how do you determine how much those routes are worth?
Getting the best price starts with a comprehensive route valuation.
Working with an experienced FedEx route broker is an important first step toward determining the value of your routes. Using your business financial data and the current market conditions, a broker can provide an estimated value to help you decide whether or not this is the right time to sell.
While each FedEx route business is different, there is a fairly consistent way to calculate its value. When preparing for your route valuation, you will need to provide all financial documentation—including your income tax returns—for at least the last three years for your company.
Your broker will also ask for a comprehensive profit and loss (P&L) statement to determine all income and expenses associated with your route business. To supplement the P&L, it will also be important to identify those expenses that a new buyer will not incur (these may include personal expenses and non-recurring or non-transferrable expenses).
To make sure you are fully prepared for your route valuation, be sure to read our 10 Tips to Sell Your FedEx Routes blog.
Bottom line: Most FedEx P&D route businesses sell for 3x to 3.5x their cash flow.
Traditionally, route businesses are sold based on a multiple of their free cash flow, often referred to as EBITDA (earnings before interest, tax, depreciation, and amortization), and in most cases FedEx routes across the country sell for pretty consistent multiples.
On average, FedEx P&D routes sell at 3x to 3.5x the free cash flow of the business. FedEx Linehaul businesses, on the other hand, sell for upwards of 4x their free cash flow or more, depending on a number of factors. To help you get a ballpark idea of what your FedEx route business may be worth, take a look at the report below.
FedEx Routes Market Comparables Report
Keep in mind this report is only an estimate. The best way to determine what your routes are worth (and whether or not it is the right time to sell) is to work with an experienced FedEx broker who understands the intricacies of buying, selling, and owning FedEx routes.
Contact KR Capital today for a free comprehensive route valuation.
KR Capital is the nation’s leading FedEx brokerage firm, specializing exclusively in the sale of FedEx routes. With nearly a decade of experience and more than $150 million in FedEx route sales, our team can help you get the best price when you’re ready to sell your routes.
We offer a free comprehensive route valuation for potential sellers, which takes into account current and historical financial statements, growth projections, local market conditions, vehicle fleet, and management and operational considerations. Each valuation is supported by current market comps, lender input, vehicle appraisals, and other factors that are critical to determining how much your routes are worth.
Ready to sell your FedEx routes?
Here is a brief overview of our complete sales process. Contact KR Capital today or fill out our online form so we can learn a little more about your business and your routes. Following your inquiry, one of our representatives will follow up with a phone call to discuss the details of your business and answer any questions you may have.
