Listing ID: 77496
FedEx Routes for sale in Sacramento County. These zip codes are Urban and within a 10-mile distance of FedEx Terminal. This is a fast-growing community with a mix of suburban, retail and industrial. One partner is a working owner who handles day-to-day operations. Second owner is absentee. Zip Codes for sale: 4 zip codes Trucks: 11 trucks owned Free and Clear (7 trucks are 2019 and 2020) Drivers: 13 Manager: 1 Full Time Sales 2021: $1.18M Net Profit: $325,300 These routes are part of a larger FedEx operation that are being Carved Out due to FedEx Scale Guidelines. Growth doubled from 2019 to 2020.
- Asking Price: $1,464,000
- Cash Flow: $325,300
- Gross Revenue: $1,188,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:14
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell operating businesses. Nonetheless, the true factor and the one they tell you might be 2 entirely different things. For instance, they might say "I have way too many various commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be reasons to try to conceal the reality of changing demographics, increased competitors, current reduction in revenues, or a variety of other reasons. This is why it is very essential that you not count entirely on a vendor's word, but instead, use the vendor's response along with your general due diligence. This will repaint a more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans with the purpose of covering things like stock, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that revenue margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be fulfilled or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract brand-new customers? Most times, operating businesses have repeat clients, which form the core of their everyday profits. Certain variables such as brand-new competition growing up around the location, road building, and personnel turn over can influence repeat customers as well as adversely affect future earnings. One crucial point to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business often, the greater the opportunity to construct a returning customer base. A last idea is the general location demographics. Is the business situated in a densely populated city, or is it located on the edge of town? How might the neighborhood median home income impact future earnings prospects?