There are several reasons you may want to sell your FedEx ISP routes—you want to retire, buy another business, or have too many routes to handle. However, no matter the reason, it’s crucial to know what to expect from the process and complete your due diligence to ensure smooth selling.
Summary
3 Questions to Ask Yourself Before Selling Your FedEx ISP Route
How Long Will the Selling/Buying Process Take?
Before you decide to sell some of your FedEx routes, you need to familiarize yourself with the sales process timeline. When a business owner sells their company, the buyer and seller must complete several steps to ensure the sale is successful. Business owners selling their routes must contract with a FedEx route broker and ultimately get approval from FedEx, so expect the process to take from four to eight months.
How is My Route Valued?
A FedEx route broker can help you determine the value of your routes, although there are several approaches when valuing any business. In general, buyers are most interested in the cash flow potential of a company, or in this case, the FedEx ISP routes. The key to the valuation of FedEx ISP routes is the elements that drive the value of the business, such as:
- Number of current contracts
- Condition of vehicles and equipment
- Number and quality of employees and drivers
- Make sure your company has a high employee retention rate for the best valuation.
How Do I Even Go About Selling my FedEx ISP Route?
In general, once you’ve decided to sell, the process goes like this:
Contact a broker.
Do a quick online search, and you’ll find many FedEx route brokers across the United States. However, it is smarter to find several brokers and compare how knowledgeable they are about the FedEx delivery routes in your area. Brokers should be familiar with FedEx contractors, FedEx ground routes, and other FedEx routes for sale.
Gather needed documentation.
Although brokers have no connection whatsoever with FedEx corporation and FedEx Ground, they are very experienced in guiding sellers and buyers through the process, including what documentation each party will need to complete the sale, including FedEx ISP route valuation.
List FedEx ISP routes for sale.
Once you’ve signed an agreement with a broker, the broker will prepare a detailed route package, formally list the routes for sale, and match the routes with prospective buyers. A good broker will list your routes on numerous websites, including general ones that feature businesses for sale and specific sites dedicated to FedEx ISP routes.
Buyer review.
Once qualified brokers are contacted, the broker will issue a route package for buyers to review.
Seller and buyer meet.
Once a buyer is serious about buying the FedEx ISP route, the buyer and seller can sit down (or videoconference) to ask and answer any remaining questions, such as: Are the trucks in good working order? Are the drivers content? Will the buyer require owner financing?
Letter of intent.
All interested buyers then submit letters of intent for the seller to review.
Seller documentation to the buyer.
Next, to maintain total transparency, the seller provides numerous diligence documents, such as the seller’s business tax returns, truck maintenance records, payroll, etc.
Purchase agreement.
Once a purchase agreement is signed, the buyer deposits money into an escrow account.
FedEx approval.
The final step involves the buyer drafting and submitting an RFI (request for information) to FedEx. The RFI contains the buyer’s business plan, goals, marketing strategies, and financial objectives. A FedEx representative then ensures the buyer understands the safety and operational requirements.
Closing the deal.
Once FedEx approves the sale, the company will officially transfer the routes to the buyer, and the escrow agent will release the funds to the seller.
Need to Increase Cash Flow? Call Financing Solutions Today!
Selling a FedEx ISP route is like selling any business—which means the company should be successful on paper and in real life. Buyers want to buy a turn-key operation from a profitable business with reliable cash flow.
Financing Solutions offers a FedEx ISP line of credit with an easy application process (it takes less than two minutes to fill out) and requires no collateral or documentation for a written offer letter. Other alternative lenders have a much longer application process and can be pretty expensive. FedEx ISP business owners love our credit line because it gives them the financial freedom to cover unexpected expenses: Truck repairs, down payments on new routes, new truck equipment, such as cameras—anything a FedEx ISP business owner may need to cover operational business expenses.
The founders of Financing Solutions have started and grown several companies together, so we understand how important it is to keep costs low. That’s why we don’t charge you to set up the credit line, and there are no maintenance fees. We don’t ask for personal guarantees, and applicants can receive a no-obligation offer letter the same day. We make approval decisions based on our decade of experience working with small businesses. Find out today why we have five-star ratings from the Better Business Bureau and Google. Also:
There are no costs to set it up or keep it in place
The easy 2-minute application online application
If approved, you’ll receive a same-day, no-obligation offer letter
The fastest setup, 48-72 hours
Once you have the line of credit, requests for funds are wired to your bank in minutes
You can use your line of credit whenever needed
Inexpensive when used (low fees)
There are no restrictions in place or collateral required
No personal guarantee is required, either
Financing Solutions is a leading provider of lines of credit
We are a reputable company with an A+ & 5-star rating
You can pay off the line whenever you are ready
The credit line is easy to renew and renews yearly
You have a secured account portal access 24 x 7
A FedEx ISP line of credit is a good funding resource available whenever your company needs it, without the heavy burden of term loan requirements. If you want to see if your route business would be approved and for how much, please fill out the no-obligation, 2-minute line of credit application here.