The Best Time to Sell Your FedEx Ground Route

We often talk about the best time to buy a FedEx Ground route, but what is the best time to sell? While you can sell a FedEx Ground route almost any time of the year, there are some factors that make some times of the year better than others.

What makes them better? Well, there are times when the transition for a new owner to take over your route is easier on both them and you. At certain times of the year, you may be able to get more money for your route. And lastly, there are circumstances when you may have an easier time transitioning to a new project or venture.

However, there are some situations where you just may find yourself in a position where you need to sell your route for a variety of reasons. Here are some tips about the best time to sell your FedEx Ground route, and things you should do to prepare.

Making it Easier for a New Route Owner to Take Over

One thing to consider when selling your FedEx Ground route is how easy or difficult it might be for a new owner to transition and take over your route. There are a lot of discussions about this topic, and to simplify things, this is something you should examine with your route broker and any potential buyer.

Here are some of the arguments:

  • Have a new owner take over when things are busy. If they can adapt to busy times, like peak, the rest of the year will be much easier for them.
  • Have a new owner take over when things are slower. They get to know the route and customers without the additional pressure of a busy season.
  • Neither one is better: things can become busy at any time, and a new route owner should learn to adapt to whatever conditions are happening right now.

From a seller’s point of view, the primary disadvantage to selling a route in a busier time is that you may have to stay on longer to help the new owner and smooth their transition. The only debate is whether that overlap time is included in the price of the route, or if the new owner will pay you to stay on.

There’s no one answer for every situation, so examine your options and pick the one that works best for you.

Getting more Money When You Sell Your FedEx Ground Route

When selling your route, understand that the buyer wants to get the best deal possible, you want to get the most from your route possible, and whoever is financing the route for the buyer wants as accurate a business valuation as they can get. The truth is as the end of a pricing negotiation, usually no one is completely happy.

However, you can increase your odds of getting the price you want by preparing your route and making sure it is at maximum value.

  • You can buy new equipment. This is a risk because the buyer may not want the new equipment or may bring their own, and then you would have to sell those items separately. Still, a route with newer equipment generally has more appeal to a buyer than one with old trucks and gear.
  • Sell when profits are high. This can mean peak or shortly after, or other seasons when your route is busy or your expenses are low. If you have historical data about your route, you can time it to sell when your profit margin is highest. Understand this does not impact the actual value of your route, but rather increases the perceived value. You still have to ensure that the buyer can get financing to cover the price you want, or that they are willing to make up the difference themselves.
  • Be organized. The more up-to-date your paperwork is, and the better it is organized, the more likely it is that you will get the price you want for your route. Have clean and recent profit and loss statements, cashflow data, and accurate expense reports and projections. This also increases the perceived value of your route, and it makes it easier for financial institutions to determine the value of your business. It makes due diligence easier as well, which means you can sell your route faster.

You want the buyer to have confidence in you, the numbers you provide them, and the business value as you have stated it. If you choose your time to sell, this can be much easier to do.

Special Circumstances

When figuring out the best time to sell your FedEx Ground route, sometimes you find yourself with little choice. Changes in personal circumstances like injury, divorce, illness, or other family problems can put you in a time crunch, and choosing your timing might not be an option.

In this case, you can still maximize your chance of successfully selling your business.

  • Keep your records, including profit and loss and cashflow up to date all the time.
  • Keep your equipment well maintained, even if it is older, and keep records.
  • Always run your FedEx route as if you are going to sell tomorrow and a buyer may look at it any time.
  • Call a route broker as soon as you know you need to sell. They can speed the process and take much of the burden of selling off your hands.

Remember, no matter when or how you want to sell your FedEx Ground route, a broker is your biggest help.

The best time to sell your FedEx Ground route may not be the same for everyone, but if you follow this guide, it can help you determine the best time for you. Look at the time of year, when your route is most profitable, and stay on top of the way you run your business, and when you’re ready to retire or move on, selling can be a breeze.

And if you are ready to sell and you have questions, contact us here at Route Advisors. We connect buyers and sellers, and we’re with you both every step of the way.

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