5 Tips for Selling Your Amazon Delivery Service Partner Business

As an Amazon Delivery Services Partner (DSP) owner, you put a lot of time, money, and effort into growing your business. However, there may come a time when you want to sell your business either to reduce your workload, change locations or even move into working in another industry.  We’ve compiled a list of five tips for selling an Amazon Delivery Service Partner business to help you be prepared when that day comes.

The better prepared you are, the easier it will be to find the right buyer for your route at the right time. You’ll also be more likely to meet your price requirements,

Keep Your Books in Order

Before selling your Amazon Delivery Service Partner Business, make sure your financial books are in order. Potential buyers will want to see your financial statements, including your income statement, balance sheet, and cash flow statement. Your books should be up-to-date and accurate. It’s also important to have a good understanding of your business’s financials so that you can answer any questions a potential buyer may have.

This will be part of the purchasing process known as due diligence. The paperwork you need will include the following:

  • Financial statements – P&L, balance sheet, income statement, cash flow statement, tax returns for the past three years, often including your personal taxes
  • Business plan or strategy document outlining the company’s vision, mission, goals, and objectives
  • Information on your employees, including details the buyer may need to know, and driving record information
  • List of any pending or potential lawsuits or tax issues (hopefully, you do not have these at all)
  • Insurance policies and any claims history
  • A 3rd party valuation report that assesses the business’s fair market value and potential for future growth and earnings.

There may be other paperwork you need, and consulting with a route broker will ensure you have everything you need before the process begins.

Put a System in Place

A potential buyer will want to know how your business is managed. They’ll want to know how deliveries are made, how drivers are managed, and how dispatchers operate. In this case of your routes, this also includes mapping the order routes are usually completed in, the areas you cover, and how drivers work together to get things done.

It also pays to have a system in place for what the owner should do if someone is out sick or for some other reason, both short and long-term. There should be a system to deal with vehicle breakdowns and other common occurrences. This shows the buyer how to be prepared for the inevitable issues they will face when owning any route business.

Being able to pass on this system enables you to build your buyer’s confidence in you and in their ability to run the business you are selling.

Build a Strong Team

When selling your Amazon Delivery Service Partner business, your team is an essential aspect of the transaction. A potential buyer will want to know if your team is reliable, competent, and trustworthy. If you have a strong team in place, it will make it easier to transition the new buyer into route ownership.

This includes any temp drivers, all full-time drivers, helpers, and others. You should also have a regular mechanic, service partner, and other vendors in place that help you run your business and maintain your fleet. The better team you have, the easier it will be for the buyer to see themselves in the role of route ownership.

Know Your Market when Selling Your Amazon Delivery Service Partner Business

Why should a buyer choose your business over another Amazon Delivery Service partner route? What sets yours apart? Is it the area you serve, the organization you have created, or your team? Knowing your market area is critical: what growth is happening, and what does that mean to the future of your business for the new owner?

Providing these in-depth insights will help your buyer understand not only how this Amazon Delivery Service Partner business will benefit them now, but how it will impact them in the long term as well.

Hire a Broker when Selling Your Amazon Delivery Service Partner Business

A route broker deals specifically with the delivery business, including Amazon Delivery Service Partner businesses. They will help you prepare your business for sale, find potential buyers, and negotiate a deal. A broker can also help provide you with a realistic valuation of your business, which will help you set a fair price you know the market will bear.

A route broker also helps prepare you for due diligence, showcase your team and the systems you have developed, and even how to show that you know your market.

Selling your Amazon Delivery Service Partner business can be a complex process. However, with these five tips, and the help of a route broker, you can be prepared. At Route Advisors, we want to be your business broker. Contact us today or whenever you are ready to sell, and we will be with you every step of the way.

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