Listing ID: 77487

Business Overview

This is a unique opportunity to purchase either one or two zip codes in Alameda County. Currently, the zip codes are owned by two different contractors. The 2 zip codes are complimentary to each other and originate out of the same terminal. Both zip codes are well managed with long term drivers and one veteran FedEx owner. Buyer can purchase two zip codes together, priced at $1,270,000 or purchase the zip codes individually (refer to broker for pricing).

Zip codes are adjacent to each other and are complimentary. One of the zip codes is primarily home-delivery, with affluent neighborhoods and some retail. The other zip code is urban and comprised of retail, offices and hospitals.

One of the owners is a long-term owner of FedEx routes (18 years) and would like to retire from the business. Two owners run both businesses with a full staff of drivers, managers and good fleet of trucks.

– Two full-time managers handle daily operations from terminal

– Well maintained fleet of 12 trucks.

– Four trucks are 2019- 2021 trucks.

– Low-mileage routes provide relief from capital expenditures.

Financial

  • Asking Price: $1,270,000
  • Cash Flow: $317,585
  • Gross Revenue: $1,272,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

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:18
  • Furniture, Fixtures and Equipment:N/A

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell operating businesses. Nonetheless, the true reason vs the one they tell you may be 2 completely different things. As an example, they might say "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might simply be excuses to try to conceal the reality of changing demographics, increased competitors, recent reduction in profits, or a range of other factors. This is why it is extremely crucial that you not depend absolutely on a seller's word, yet instead, make use of the vendor's solution together with your general due diligence. This will paint a more reasonable picture of the business's current scenario.

Existing Debts and Future Obligations

If the current company is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering things such as stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that revenue margins are too tight. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be met or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in new customers? Many times, businesses have repeat customers, which develop the core of their daily profits. Certain aspects such as brand-new competition sprouting up around the area, road building, as well as staff turnover can influence repeat consumers and also adversely affect future profits. One vital thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business often, the greater the chance to build a returning client base. A last idea is the basic area demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? Just how might the regional typical family earnings effect future earnings potential?