Selling FedEx Routes

FedEx Route Sales Cycle

Once a contractor has made the decision to put their routes up for sale, a common question often comes up “How long will it take to sell my routes?” One of the first ways to gauge this is to look at the complexity of your business. How many routes/trucks are you selling? Are you involved in multiple sectors: Ground, Home Delivery, Linehaul? Are there any pending requirements that need to be completed prior to the sale: negotiations, ISP transition, overlap? Is your contracted service area expanding or are you inheriting any new routes in the coming future?

Once we’ve answered these questions, it will be easier to estimate the timeline required to sell your routes. Another factor is financing. Are you planning on allowing the deal to be financed or will it be a cash sale? This can increase the overall sales cycle duration. After a general understanding of all factors involved, we can create an accurate timeline to determine the estimated turnaround time.

Best Time To Sell

Another common inquiry is when is the best time of year to sell FedEx routes. The simple answer is any time. There are always interested buyers that are willing to jump no matter when that may be.

The obvious season to avoid would be peak. This does not mean that it is impossible to carry out a sale during or leading up to the holidays, but it is more likely that it will add time to the total process. We typically recommend to buyers that they should start the process as early as possible in the calendar year. That said we’ve sold routes into late November, so there is really no restrictions to when you can sell your FedEx route business.

Steps to a Successful Sales Presentation

When the time comes to put your routes in front of a buyer audience, you want your presentation to be clear and concise. You need a marketing package that will give buyers the knowledge and confidence to make an informative decision as to the routes you are selling.

  • Communicate a clear description of your operation. The more specific you can be when describing your business, the easier it will be for a buyer to want to move forward with a sale. Whether you are an owner operator that drives a route or run your business semi-absentee, make sure you are up front about these details.
  • Present a detailed description of the assets included in the sale, namely the vehicles. Accurately describing vehicles make, model, and condition will instill trust in a buyer and help to get the deal done.
  • Include accurate financials in your listing, making sure to include key metrics that will motivate a buyer’s interest. If you plan on allowing financing with your deal, you may want to include figures that estimate loan values, closing costs, and debt service.
  • You should always have a signed non-disclosure agreement (NDA) with each potential buyer. Confidentiality while in the process of selling your FedEx routes should always be a focus.
  • Have updated vehicle maintenance records and weekly settlement sheets available for interested buyers. Also, have your ISP/IC contract available for potential questions.

Putting It All Together

It takes experience and hard work to create a dynamic presentation that will grab the attention of a qualified buyer. Let our firm guide you through this process so you can show off your business in the best possible way.

Contact Us for more details.