Selling Your FedEx Ground Route in the New Year

Many people start the new year by starting something new. For some, that means buying a new business like a FedEx Ground Route. For others, it means selling your FedEx Ground route in the new year and moving on to another type of business.

Either way, the new year can be a great time for starting over or resetting some part of your life. If you are one of the route owners who is selling your FedEx Ground route this new year, here are some tips for you.

Why Now Might be a Good Time to Sell

First, why would you sell your FedEx Ground route now? Well, as we stated above, many people resolve to start a business or purchase one in the new year, and there can be a lot of eager buyers out there. Generally, this is a slower time of year for FedEx Ground routes as well, so it is easier to transition and train a new owner.

You also might be burned out after a busy peak season, and ready to try something new or even transition to a new and different route. Either way, the new year offers a great opportunity to sell your route to the right buyer who is ready to make a purchase now.

Getting Ready for Selling Your FedEx Ground Route

Much like when you are selling a house, when you are selling a route, you need to have good curb appeal. For a FedEx route that means more than what the route looks like on the outside, although ensuring that your vehicles are in good shape and look good is a step in the right direction.

However, you also need to make sure your financial picture is up to date and looks good. Revise profit and loss statements, make sure all bills are up to date, and use your last year’s earnings statement to increase the perceived value of your route.

For a buyer to want to purchase your route, they need to see that it is healthy both inside and out.

Listing Your Route

There are a lot of places you can list your route, just like when selling a house. However, not all of these listings are created equal, and you can waste a lot of time and money listing your route in the wrong market or targeting the wrong kind of buyer.

The real solution is to use a route broker who knows the right places to list and sell your route, including where the right qualified buyers go looking for routes. You can try this on your own, but you may create more work for yourself than you want. Selling your FedEx Ground route can be like having another part-time job.

But if you do go out on your own, look for sites that list logistics businesses like yours, and specifically delivery routes. Those will be the buyers most likely to be ready to buy a business like yours.

Finding the Right Buyer

We talk a lot about finding the right buyer for your FedEx Ground route, but in summary, that person must have certain qualities:

  • They must be financially ready to purchase your route with either a loan or cash in place.
  • They must pass a FedEx background check.
  • They need to have a good driving record free of major issues.
  • They must be able to pass a FedEx Ground drivers’ training course.
  • They need to understand the logistics business, and preferably have worked in the last-mile delivery arena.

The right buyer, and a qualified one, can be a challenge even if you list your route in the right places. A route broker can help you sort through those buyers who are just “tire kickers” and those who are serious about purchasing a FedEx Ground route and can actually qualify to do so.

Due Diligence When Selling Your FedEx Ground Route

The final thing to consider when selling your FedEx Ground route is the process of due diligence. We have written about it in detail elsewhere on this blog, but you will want to have all of your paperwork in order, including cashflow statements, profit and loss statements, and taxes from several years to show your prospective buyer.

They will investigate all of your claims about your route to ensure they are true and that they are getting the best deal possible. A route broker can help you navigate this process and ensure you are ready.

Remember, selling your FedEx Ground route takes time. Even if you find the right buyer today, it will still take some time before you can transfer your route to the new owner. In the meantime, you will still need to run your route to the same high standards you already have been.

This is another time when a route broker can help. They can help manage the process of selling your route, leaving you free to run your business. When you are ready to sell, contact us here at Route Advisors. We will be with you every step of the way.

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