Listing ID: 80130
Three highly profitable (highly coveted) FedEx Package Delivery routes in the greater Augusta, GA area are available for purchase. The business has been pre-approved by SBA! The routes are contiguous. Annual top-line revenues have increased by 24% and then 37% and then 79% year to year to year! It is projected to increase another 44% for 2021! The business includes 11 well-maintained vehicles (2 are new and two are larger box trucks). The vehicles are in excellent condition. The experienced tenured manager and drivers are all in place and the Seller is available to share his decade of experience perfecting this operation. FedEx also provides corporate training and support. This Seller has consistently scored 99 (out of 100) on FedEx’s internal contract service area rating system. Greater Augusta, GA is the second largest city in the state and these routes are in one of the fastest growing counties in the state! This is an ideal opportunity for a smart Buyer to secure a place in the FedEx system in a growing location as a Contracted Service Provider. This business operates out of the FedEx facility. Trucks are stored at the FedEx facility when not out on routes and no rent is paid by the Owner.
- Asking Price: $850,000
- Cash Flow: $286,000
- Gross Revenue: $1,300,000
- EBITDA: N/A
- FF&E: $30,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2011
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
The company was started in 2011, making the business 11 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell operating businesses. Nonetheless, the genuine reason and the one they tell you may be 2 completely different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may simply be justifications to attempt to conceal the reality of changing demographics, increased competition, recent decrease in incomes, or a variety of other factors. This is why it is extremely important that you not count entirely on a seller's word, but rather, utilize the vendor's solution together with your total due diligence. This will repaint a much more realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Many operating businesses finance loans with the purpose of covering points such as stock, payroll, accounts payable, etc. Remember that in some cases this can imply that earnings margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to 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 may have existing contracts with suppliers that should be met or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in new consumers? Many times, operating businesses have repeat customers, which develop the core of their day-to-day revenues. Certain elements such as new competitors growing up around the location, roadway building, and also personnel turnover can affect repeat customers and adversely influence future profits. One essential point to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the higher the possibility to build a returning consumer base. A last idea is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the edge of town? Just how might the local average family income effect future revenue prospects?