ABB has decades of professional experience to guide sellers in pricing their businesses effectively for a sale, while insuring a maximum return on their investment.
American Business Brokers operates on the maxim that there can be no losers in a successful business sale. Both the seller and buyer must be satisfied with the end result.
ABB takes extraordinary precautions to guarantee your FedEx Routes business is attractively priced and has a sound financial base. ABB works hard to ensure, as precisely as possible, that we understand and are knowledgeable of every business we represent. ABB will not knowingly misrepresent a business nor will we ever encourage a buyer to underbid the client's price.
We'll schedule a private, no-obligation meeting at the seller's choice of location and convenience. Basic information is discussed to guarantee that both seller and broker are familiar with each party’s respective roles and expectations throughout the listing process.
A thorough business valuation is the most crucial step in order to attract a savvy business buyer but yet maximize the seller’s return. ABB’s years of experience provides the competence that the seller does not over-value the selling price of their
Information required to analyze the business includes the following:
- Two to three years of detailed and current financial statements, balance sheets, and/or income tax returns.
- Copy of the most recent settlement statements
- List of vehicles used in the operation of the business, showing year, make-model, mileage and market value of each vehicle
- List of any other assets, and their current market value, that would be included in a sale
- Copy of any other lease for purchase to own agreements
- List of PSA’s and corresponding zip codes
The process of the sale involves three main steps.
- Calculating the Proper Valuation of Your Routes
- Strategic Marketing Solutions Tailored to Your Specific Needs
- Effective, Successful Closing of the Sale
THE MAIN QUESTION YOU MAY BE ASKING IS:“HOW DO I KNOW WHAT MY FEDEX ROUTES ARE WORTH?”
Identifying the free cash-flow of the business is the first step in allowing us to determine the fair market value for your FedEx routes. Our longstanding, specialized expertise and market intelligence gives clients of ABB a high level of confidence in knowing they can expect the highest value possible.
Regardless of where your business falls on the contractor spectrum, there is a fairly consistent way to calculate the value of your FedEx routes. Every FedEx operation is different.
- Rural routes differ from urban routes
- Driver wages vary with local labor markets
- Vehicle fleets range from new to old
- Individual bookkeeping may vary according to your needs and strategies
- Even fuel prices and insurance costs vary from different parts of the country as compared to others.
The information below allows ABB to provide a personalized and complete, market-value estimate of your FedEx routes (free of charge), please contact us immediately at email@example.com or (877) 425-0677
Compile the Profit and Loss Statement
Identifying the value of your FedEx routes may sound complex; however, it can be determined fairly easily, depending upon how organized your financials are. Whether you have a do-it-yourself method of keeping track of your income and expenses, or
hire a bookkeeper/CPA to do it for you, we start the process with a traditional Profit and Loss Statement. This allows us to evaluate all income and expenses associated with your corporation.
Your 1099 from FedEx will document the gross revenue that your corporation has earned from your FedEx business. The next step is to list ALL expenses that have been run through your corporation. These will include things like fuel, repairs and maintenance, lease expenses, insurance, payroll, etc.
“Normalizing” the Profit and Loss Statement
Once you’ve produced your Profit and Loss Statement, the next step will be to “normalize” your P&L.
“Normalizing” the Profit and Loss Statement means, you will want to identify those expenses that are:
- Personal in nature
- Applied tax reduction strategies
Simply put, these are the expenses that will not transfer to the new buyer, once he/she purchases your routes. You will simply note these expenses on your P&L and add their total to the corporation’s net income.
Examples of these expenses may include:
- Loan/interest payments for a loan that will not transfer to a new buyer
- Personal phone/fuel/vehicle/meals/entertainment expenses
- Non-essential employee payments
- One-time vehicle purchases or expenses (i.e. a new engine)
Strategic Marketing to Sell Your Florida and Nationwide FedEx Routes
Identify Shareholder Compensation
The goal with this step is to identify all the ways in which the ownership of the corporation receives compensation. As the owner of your own corporation, you may choose to pay yourself (and your fellow shareholders) in a variety of different ways, i.e., a W-2 salary, 1099s, distributions, etc., unless, as the owner, you are a full-time driver for your routes. In that case, this compensation figure should be added to the figures identified above, in steps 1 and 2, in order to arrive at a final free-cash-flow figure for the corporation.
Determine Industry Multiple & Valuation Formulas
FedEx routes across the country sell a multiple of their free cash-flow, often referred to as “EBITDA” (Earnings-Before-Interest, Tax, Depreciation, Amortization). Multiples vary throughout regions and American Business Brokers is always researching for sold data for comparison.
American Business Brokers utilizes several formulas to arrive at an opinion of value for your routes and our brokers are always available to fully explain the valuation process in detail.
Sell your FedEx Routes Business through the proven experience of American Business Brokers. We'll work together in establishing an effective asking price and terms attractive to the buyer to guarantee a satisfactory experience for both seller and buyer.
American Business Brokers will work closely with you, the seller, and employ the latest, most strategic, marketing techniques ---- specific to selling FedEx Routes businesses.
In order to eliminate inconvenient and unnecessary false starts and disruptions for the seller, ABB thoroughly pre-screens all prospective buyers. To ultimately build total confidence in the final purchase decision, ABB takes pride in their unrelenting efforts to educate buyers in their understanding of all facets of the seller’s FedEx business route.
For a FREE, confidential, no-obligation consultation
.....Call us Today at (877) 425-0677!
Call ABB today to receive:
- FREE Valuation of Your Business
- FREE No-obligation, Consultation
- FREE Confidential and Professional Purchase of your FedEx routes
CALL 877-425-0677 TODAY!!!!
American Business Brokers is here to help guide you through the maze of pre-qualifying the right buyer to take over your FedEx routes.
Contact ABB IMMEDIATELY to get started.