Black Iron Advisers provides its clients with a quality of service we believe no other firm can match. Our client relationships are built on trust and discretion. We understand that buying or selling a business is a significant decision. In this light, we are here to help educate and inform both buyers and sellers about the Fedex route market. As Fedex operators ourselves, we are deeply established within the FedEx community, remain on top of current trends within the market, and understand how to operate these types of businesses.
Key Information
For Sellers
What are my routes worth? Route values are determined based on a multiple of cash flow of the business. Depending on location, route structure, overlap and fleet makeup, we are currently seeing companies valued between 3x-4x of cash flow.
Who does Black Iron Advisers represent? If we are engaged by you on a sell-side assignment, we represent you. Unlike other brokers in the market who act on a finders fee basis (brokers only represent themselves in this situation), we represent you and work in your best interests.
What is the selling process?
- First, Black Iron Advisers engages with you to sell your routes
- Black Iron Advisers then puts together a confidential information memorandum which we use to market your business to buyers. This will include historical financials, projected revenues, details of your routes, fleet details and anything else a buyer may want to know about the business
- Marketing begins: We utilize our own proprietary buyers database, our own website and 3rd party online listing portals
- Offers received: Black Iron Advisers helps you analyze and select which offers to proceed with, and negotiate the deal with the right buyer
- FedEx Approval: Once the deal is negotiated; buyer's funds are put into escrow. Black Iron Advisers works with both buyer and seller to get the necessary FedEx transfer approvals. This typically takes 30-60 days. Once approved by FedEx, escrowed funds are dispersed to seller
Key Information
For Buyers
How do FedEx routes work? Unlike FedEx Express, FedEx Ground routes are structured as an owner/operator model. Your company has the exclusive right to provide delivery services within your contracted geographic area. FedEx becomes your customer.
Why buy FedEx routes? Parcel delivery has historically grown faster than GDP. Given its recession resistant characteristics (revenue/volumes flat in the Great Recession), online shopping driving parcel volume growth and depreciation tax shield characteristics, FedEx routes have become attractive investments.
Can I use financing? Yes. FedEx routes can be, and often times are, financed. One of the more popular options for buyers is to use a SBA loan product. Black Iron Advisers can help assist you in lining up financing through our own proprietary network of lenders. Our lenders understand the FedEx route businesses structure, contracts and assets so it takes less time for you to get approved.