Listing ID: 67477
Recession Proof Business-Despite COVID19, Business Has Been Booming!!
The Company is a Pennsylvania 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 15 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).
Why invest in this FedEx Ground Company?
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. $207K at closing, so that the new Buyer can get all 17 vehicles will come free and clear
12. A total asset value of $852K will be coming with the sale
13. Make money day 1 and get paid every single week. No cash flow or AR issues!
- Asking Price: N/A
- Cash Flow: $371,913
- Gross Revenue: $1,837,090
- EBITDA: $371,913
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2019
- 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
The 15 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 17 of the vehicles will be delivered free and clear at the time of closing.
The Seller is willing to provide reasonable training period needed until the Buyer is comfortable taking full control.
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!
The company was founded in 2019, making the business 3 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell businesses. Nevertheless, the real factor vs the one they say to you may be 2 completely different things. For instance, they may say "I have too many various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in earnings, or a range of other reasons. This is why it is very vital that you not rely totally on a seller's word, but instead, utilize the vendor's solution in conjunction with your overall due diligence. This will repaint a more realistic picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover things like supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that profit margins are too thin. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be fulfilled or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in brand-new consumers? Most times, companies have repeat consumers, which create the core of their day-to-day earnings. Specific aspects such as brand-new competition sprouting up around the area, roadway building and construction, and employee turnover can affect repeat customers as well as negatively impact future incomes. One important point to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business often, the greater the possibility to develop a returning client base. A final idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the neighborhood typical house earnings impact future income prospects?