Ready to Sell Your FedEx Routes? Start Here
There are several reasons why FedEx contractors might decide to sell their routes. Whether you are relocating, retiring, or simply looking for a change of pace, selling your route business is a decision that will take time and thought to execute. For this reason, it pays to have an experienced broker on your side to guide you through the process and ensure you get the highest return on your investment.
As the leading FedEx brokerage firm in the nation, KR Capital has compiled a comprehensive resource library with information covering everything contractors need to know about selling their P&D and linehaul routes. Below is a brief overview of what you will find there.
Route Value
There is a fairly consistent way to calculate the value of a given set of FedEx routes, and KR Capital has developed an easy-to-follow, four-step template to help you estimate the value of your routes. It begins with a complete profit and loss (P&L) statement to identify all income and expenses associated with your route business so that you can determine your free cash flow.
Next, you will need to “normalize” your P&L statement to spotlight which expenses a new buyer will not incur once they purchase your routes. Next, we’ll identify how key shareholders in your company are compensated, which will help determine your final free cash flow, and lastly we will help you determine the industry multiple. (Businesses are traditionally sold based on a multiple of their free cash flow, often referred to as EBITDA.)
Market Insights
Because of the nature of the FedEx market, it is vitally important that sellers do what they can to differentiate their businesses from the rest. It is equally important that they receive sufficient buyer exposure to ensure their routes get sold at a fair market price.
KR Capital has been aggregating buyer data over the past several years and at present has over 10,000 active FedEx buyers in our proprietary buyer database. This ensures our clients receive sufficient exposure to get their routes sold in a timely manner and an excellent price.
Seller Forms
As with most business sales, there is a lot of paperwork involved with selling your FedEx routes. The team at KR Capital has compiled a list of important resources for contractors, including buyer and seller questionnaires, buyer activity statistics, a helpful cash flow adjustment worksheet, and a comprehensive breakdown of the FedEx route sales process so that you know what to expect once things are set in motion.
Buyer Database
Built exclusively for KR Capital clients, our proprietary database is the key to helping you find the right buyer at the right price. Comprising more than 10,000 active buyers across the country, it allows us to produce highly targeted lists of buyers exclusively for KR Capital clients. We utilize parameters such as desired location, P&D vs. linehaul, and ideal size/cash flow to pair your business with the perfect buyer.
Online Exposure
Our online presence is a cornerstone of our marketing platform and what sets us apart from our industry competitors. We work diligently to ensure top placement on the most prominent search engines so that potential buyers can find us easily. Knowing that the majority of consumers today shop online, we continue to analyze the top terms that FedEx buyers are searching for and craft our online strategy accordingly. This is an incredibly complex process and one that maximizes exposure for our clients online.
Offering Memorandum
Our Offering Memorandums are among the best in the industry and a key component to our success in getting FedEx deals settled quickly, efficiently, and for a premium price. Presented in a highly professional and polished form, they showcase several important aspects of the route business for sale, including a high-level overview, detailed route descriptions, meticulous financial information, and an easy-to-follow cash flow spreadsheet.
Sell Your FedEx Route with KR Capital
An industry leader specializing exclusively in the sale of FedEx routes, KR Capital has worked with hundreds of FedEx contractors nationwide to successfully value, market, and sell their routes for a premium price.
If you have decided now is the time to sell your FedEx routes, contact KR Capital today or fill out our simple Seller Info Request form. We look forward to learning more about your business and answering any questions you may have about the sales process.