Listing ID: 77504

Business Overview

FedEx Routes: University campus and city routes for sale, near Sacramento County. These are 7 Zip codes – routes are in two separate communities. One area is in a dense college town. Zip Codes are college campus, retail and surrounding city. Second area is within 10-mile distance of Sacramento terminal and is a mix of urban, industrial and retail.

Growing FedEx operation is priced to sell, with one Semi-Absentee Owner. Routes are managed by 2nd owner and manager. The delivery is from warehouse to resident homes and businesses within these zip codes. All trucks are parked in a terminal with free rent, so the major expenses are only driver salary, fuel, workers compensation, repairs and maintenance.

– Growth continues to grow in 2022 due to a consistent increase in eCommerce.
– Two full-time managers handle daily operations from terminal.
– Well maintained fleet of 23 trucks (twelve trucks are 2019 and 2020).

Financial

  • Asking Price: $2,600,000
  • Cash Flow: N/A
  • Gross Revenue: $2,500,000
  • 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:15
  • Furniture, Fixtures and Equipment:N/A

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell businesses. Nonetheless, the true reason vs the one they tell you might be 2 totally different things. For instance, they may state "I have too many other obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might simply be reasons to try to hide the reality of transforming demographics, increased competition, current reduction in revenues, or an array of various other reasons. This is why it is extremely important that you not rely absolutely on a seller's word, yet rather, make use of the seller's answer combined with your general due diligence. This will paint a more reasonable picture of the business's existing scenario.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans so as to cover points like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can imply that earnings margins are too thin. Numerous organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that must be fulfilled or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area attract brand-new customers? Often times, operating businesses have repeat customers, which develop the core of their daily profits. Particular factors such as brand-new competition growing up around the location, roadway building, as well as personnel turn over can impact repeat consumers as well as adversely influence future profits. One important point to consider 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 better the possibility to develop a returning customer base. A final thought is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? How might the local mean household earnings impact future income prospects?