Before You Buy: 5 Questions to Ask About FedEx Routes for Sale

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When you like the looks of a route for sale: ask these questions next

How comfortable am I with the presented financials?

Does the Net Operating Income (NOI) meet my needs? Is it within a healthy range? If not, is it exaggerated? Is this business a fixer upper?

What is the price to revenue percentage? Does that fall within industry averages?

What is the Listing Multiple telling me?

How does the listed fleet impact the price of this business?

What is this business’s ISP compliance and overlap status?

Has this business transitioned to an ISP agreement?

Is this business 100% overlapped and meeting FedEx Ground scale requirements?

Do the vehicle appearances comply with FedEx Ground standards?

How will any deficiencies impact the financials of the business?

Does this business meet my involvement preferences?

Does this business have a manager? Do the financials of the business justify that role?

How involved do I want to be and does that line up with the realities of this business?

What is the current quality of the fleet and how will that impact future business revenue and expenses?

What fleet strategy is the current operator using? Is this the same strategy I would use?

What is the estimated CAPEX I should anticipate, both initially and annually, to operate this business?

Does the repair and maintenance number provided align with the age of the fleet and average daily miles?

Does this business have recruiting or retention challenges?

Is the current operation over or under staffed?

What is the typical tenure of the employees?

How is the labor market in this area?

Who is handling recruiting currently?

How involved do I want to be in the recruiting process?

Would you like help evaluating a business?

Our team of experienced contractors can help you walk through the financial, operational, and practical aspects of each business.