Why Use a Professional Business Broker When Selling Your FedEx Route

Selling a business, any business, can be tricky. This can be especially true of selling a FedEx route. Many of those who are selling a business use a business broker, and those selling FedEx routes are no exception.

So why use a business broker, or in this case a FedEx route broker? Here are some advantages:

You Are Free to Keep Running Your Business

Selling a business can be a full-time job in and of itself. Not that you still won’t have some work to do. You’ll have to take care of some key things:

  • Gather your taxes, both personal and business for the last three years.
  • Gather profit and loss statements and your payments from FedEx so you can show what your business actually makes money.
  • List all of the assets, like trucks, hand-trucks, and other assets you will sell with your business.

The business broker can make sure you have everything you need. Then as they search for potential buyers, they can share this data when it is appropriate in the selling process. That way, you are not spending your time meeting with buyers, scheduling appointments, and dealing with the sales process.

The Route Broker Knows the Ins and Outs

Each state and each business is different. When selling your business, there are tax advantages to selling in a particular type of sale, and there are other legal considerations as well. There are also non-disclosure agreements, Letters of Intent, and contracts to draft and sign. The business broker knows how to guide you working with your attorney and CPA and help you manage this aspect of selling a business better than a typical route owner.

Besides, the time it would take you to do these things would add significant work to your already busy schedule even if you knew how to do all of them.

Due Diligence and a FedEx Route Broker

A buyer will always engage in something called due diligence, something you probably did when you bought your route. Essentially, they will be examining paperwork and documents to make sure you are representing the route you are selling truthfully.

This is why it is so important to be transparent about any issues from the start. A business broker will not only make sure the buyer has everything they need, but will also make sure you are adequately prepared for this important step.

Think of it like selling a house. You can do it without a realtor, but that is not always the best choice. They have connections and expertise you do not, and in the long run a business broker, just like a realtor will save you time and money.

Finding the right buyer at the right time

The most important thing a business broker does for the seller is to help them find the right buyer at the right time. A business broker knows where buyers are, who is a qualified buyer with the financing or funds to purchase your route and the buyer who will harmonize with FedEx standards for customer service and running an excellent route.  A good FedEx route broker should be able to find you a buyers that will be “approved” by FedEx Ground.

Listing your route in certain public forums often attracts non-buyers who are just looking, buyers who are not qualified, and worse, scammers. A business broker can protect you from those headaches, and more.

But again, the most important thing your business broker or route broker in this case does for you is to save you time, enabling you to still run your business. Remember, your route needs to still be profitable even as you have it up for sale. This is the time for your route to shine, not to be struggling.

If you have drivers on your routes, you also want to be careful to manage their expectations and be careful how and when you tell them your business is for sale, and that they may have a new boss. Your business broker can also help you navigate this tricky area.  A good FedEx route broker should always treat confidentiality as one of the most important aspect when they help you.

If you’re ready to sell your FedEx ground route or routes, contact us today. At Route Advisors, we connect sellers with the right buyer at the right time, and we’re with you every step of the way. Contact us today!

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