Listing ID: 70169
Virgina based provider of transportation services focused on delivery of FedEx Ground Corp packages. Strong growth, co-location, low employee turnover, and above average Stops Per On Road Hour ratio. With the forecasted continued addition of Smart Post and FedEx Express packages, explosive growth is predicted.
- Asking Price: $995,000
- Cash Flow: $247,678
- Gross Revenue: $956,311
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2020
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:13
- Furniture, Fixtures and Equipment:N/A
Domicile FedEx Terminal
Pursue Other Interests
Increased revenue from the growth of FedEx and their 1/4-billion-dollar marketing efforts. It's key to note that growth is, and has been the rule for FedEx for many years. Contractors with FedEx will benefit from the infrastructure that is currently in place.
The venture was established in 2020, making the business 2 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell operating businesses. Nevertheless, the real factor and the one they tell you might be 2 absolutely different things. As an example, they might claim "I have too many other commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be reasons to try to hide the reality of transforming demographics, increased competitors, recent reduction in incomes, or an array of various other factors. This is why it is very vital that you not count absolutely on a vendor's word, but instead, use the seller's solution combined with your general due diligence. This will paint a more practical picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover points such as inventory, payroll, accounts payable, etc. Remember that occasionally this can suggest that revenue margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be met or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in new customers? Many times, companies have repeat customers, which develop the core of their day-to-day earnings. Certain factors such as brand-new competitors sprouting up around the area, roadway building, and staff turn over can impact repeat consumers as well as adversely affect future earnings. One important thing to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the better the opportunity to develop a returning customer base. A last thought is the general area demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Just how might the regional average family income impact future earnings potential?