An Education in Linehaul Routes
When selling FedEx linehaul routes it is important to act as a resource to potential buyers coming into the industry. This is important not only because the buyer needs to feel confident in the business they are purchasing, but also because they will need to be approved by FedEx to assume your contract terms and conditions. With this in mind, you can set yourself up for a smooth sale process.
The majority of buyers looking to potentially enter the FedEx linehaul sector will have questions related to subjects like: settlement statements, points, dedicated/non-dedicated/team runs, and the open board. You will want to clearly define the details of your operation and the general overview of FedEx linehaul. These details can include the total number of trucks you’re running, the points you currently have on each truck, and the number of dedicated routes.
FedEx linehaul routes can be very profitable, and buyers need to understand the true value of running these operations. Once you have successfully educated a buyer on value, you can be positioned to sell your FedEx linehaul routes for a higher competitive price.
Be Prepared with Good Financials
Once you have provided a buyer with details of your operation and general information about the linehaul routes you are selling, you want to prepare a solid financial presentation. We recommend including the following documents:
- 3 years of Tax returns 1120s
- 3 years of 1099s
- 1 year of settlement data.
- A complete list of vehicles including make, model, year, mileage, and general condition
- Employee list including salary
- List of line haul runs
- Profit and Loss Statement
- Any other relevant financial data available
- 1-2 years of OP-108 Monthly FedEx Maintenance Records
It’s All About Your Drivers
As a FedEx linehaul business owner, you know that good drivers can make or break your business. With this in mind, it will be no surprise that individuals interested in your business will have questions regarding these key employees. It is important to clarify that linehaul drivers are different the ground drivers in that they are not customer facing. The main value of this is allowing the driver to focus on their key responsibility, driving. However it is good to mention that your drivers have a network of support mainly from their coordinators and managers. It is also important to specify what qualifications make a good linehaul route drive. You can include: clean background and driving record, satisfied DOT requirements, and driving experience within the FedEx system or similar industry.
Celebrate Your Industry
It’s an excellent time to sell a FedEx linehaul business. Opportunities are more limited than Ground/Home Delivery routes, e-commerce and economic conditions are strengthening the market, and buyer demand is up because of higher multiples. Being forthcoming with these factors in combination with a strong informative presentation of your business, you will attract qualified buyers that will be excited to hear more about the opportunity to buy in to this lucrative industry.
Contact us for more information on how we can help you structure the sale of your
Linehaul route business and put you in front of qualified buyers.