Business Overview

Recession Proof Business-Despite COVID19, Business Has Been Booming!!

CAUTION: These routes are ultra rare as Fairfax County FedEx routes rarely come up for sale. This operation has been owned by the same owner for over 20 years! It is beautifully operated cash cow! Preference will be given to cash Buyers.

The Company is a Virginia corporation. Since its inception it has achieved rapid sales growth! The Company is a FedEx Ground P&D (pick up & delivery) contractor of FedEx, a Fortune 100 global shipping company.

The Company’s “Independent Contracting Agreement” with FedEx gives it exclusive rights to service on average of 16 routes on a daily basis. The business is ISP compliant and is 100% overlapped. All of the routes are highly contiguous making it a very efficient operation.

FedEx contractors deliver packages from the terminal to businesses & residential recipients. The typical hours of operation for the drivers are from 8am to 5pm.
With the continued growth of e-commerce in the US, the Company is expected to continue to growth rapidly over the next 5 years!

The Company’s trucking business operated out of one local FedEx terminal owned by FedEx, therefore the Company does not have to pay rent. The operation comes with a manager that has solid experience managing the business. The Company’s Manager and drivers will remain with the business.

Operating the Company involves keeping in contact with FedEx, sorting & loading packages, dispatching routes, reporting, hiring and dealing with staffing issues, truck maintenance, and payroll (accounting).

Investment Considerations

Why invest in this FedEx Ground Company?
Easy…

1. Consistent sales growth since founding.
2. Part of a rapidly growing industry
3. Powerful global partner in FedEx
4. Recession proof business. Thrived in 2008 economic downturn and is thriving during the current COVID19 outbreak.
5. Predicable revenue
6. Range of growth strategies
7. Ease of management as the business comes with 1 non-driving operation manager that oversee the day to day operations & manage the drivers.
8. Well managed business and clean books
9. Impeccable reputation with FedEx
10. Highly efficient operation with having all routes highly contiguous and 100% overlapped.
11. No debt will be transferred, the Seller will pay approx. $42K at closing, so that the new Buyer can get all 20 vehicles will come free and clear
12. A total asset value of $496K will be coming with the sale
13. Make money day 1 and get paid every single week. No cash flow or AR issues!

Financial

  • Asking Price: N/A
  • Cash Flow: $519,433
  • Gross Revenue: $2,202,067
  • EBITDA: $519,433
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2002

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:20
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The 16 FedEx Delivery routes are operated out of a local terminal owned by FedEx, therefore, the Seller and other contractors do not pay rent. No debt will be transferred as all 20 of the vehicles will be delivered free and clear at the time of closing.

Is Support & Training Included:

The Seller is willing to provide reasonable training period needed until the Buyer is comfortable taking full control.

Purpose For Selling:

Retirement

Opportunities and Growth:

FedEx route owners have experienced growth each year since this model has been in place for over two decades! The trend is continuing to go the way of e-commerce (online shopping) which is why the logistics industry has exploded. FedEx is no exception to this growth. In fact, FedEx growth is projected to be more significant in the coming years due to FedEx strategic partnerships with big name retailers and online retailers. This is a recession and competition proof business!

Additional Info

The venture was started in 2002, making the business 20 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell businesses. However, the genuine factor and the one they say to you may be 2 entirely different things. For instance, they may claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or a range of other reasons. This is why it is really crucial that you not count completely on a seller's word, but rather, use the seller's solution in conjunction with your total due diligence. This will paint a more sensible image of the business's current scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that revenue margins are too small. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that have to be met or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in brand-new consumers? Often times, companies have repeat clients, which form the core of their everyday profits. Particular variables such as brand-new competitors sprouting up around the location, roadway construction, and also staff turnover can influence repeat consumers and adversely affect future revenues. One crucial point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the greater the opportunity to build a returning customer base. A final thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Just how might the local average family income effect future revenue potential?