[Wmateo]

I have a prospect that wants to acquire the business he works for. Its a FedEx route that has been operating for 20 yrs. The selling price is $250,000. The buyer has good credit and 70% in cash. Therefore, he only needs $70,000 to purchase the business. The business only has tangible assets totaling $50,000, which are 3 FedEx trucks. The gross annual sale of the business is $300,000.

Direct Lenders only please.

[Jstarr]

wow, that's a tough one, search the threads and look for someone that will do equipment finance, maybe they can help.

[Jplummer]

I am very familiar with the FedEx ISP, Ground, Home Delivery, Line Haul and Custom Critical programs. Typically the routes sell for between 2.5 - 3 times their annual net (usually around 15-20% of their gross) and unless the trucks are extremely old or are some sort of small cutaway van or Sprinter they should be worth a lot more than $50,000. Used step vans typically sell for around $25-$30k a piece for late model gas units and $40-$50k for late model diesel units. Having said that if the trucks are late model step vans he should be able to get between $75-$150k financed for the trucks. If the routes are in the 15-20% profit margin he should not pay any more than $90k for the routes. $300k for the routes and trucks may be a bit much if he is dealing with older or small vans. Value should be about half the asking price.

I am currently working with a local banks to get routes financed for experienced FedEx contractors. The issue that comes up is who actually owns the routes? Well the answer is FedEx. Being a startup you will run into some obstacles unless the individual has very good credit and has very solid reserves.

[matt.slagowski@gotorro]

I actually just did one of these. The merchant needed a little less but if he has 700+ credit I could probably get it done. At least come close. Feel free to give me a call 866-858-2404 ext. 2003.