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05-14-2016, 10:58 AM #1
- Join Date
- Nov 2014
- Location
- Fort Lauderdale, FL
- Posts
- 66
FedEx Route Acquisition for $250k
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.William R. Mateo
Mateo Capital Group
Tel: (954)802-2833|Fax: (888)860-1508
http://www.mateocapitalgroup.com
Supporting Common Sense Financing!
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05-19-2016, 07:54 AM #2
wow, that's a tough one, search the threads and look for someone that will do equipment finance, maybe they can help.
Jerry Starr
Insource Funding
433 Plaza Real,
Boca Raton, Fl 33432
P: 800-805-3391 Fx: 561-270-6895
insourcefunding.net
WHAT WOULD YOU DO " IF " YOU HAD THE CAPITAL
◆ 50% LTV - No Fico Required
◆ 90% CLTV on Purchases
◆ Investment Residential / Commercial Properties
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05-19-2016, 12:41 PM #3
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.Jim Plummer
Quality Leasing Co., Inc.
A Tom Wood Automotive Company
Office: 317-253-4415
Direct: 317-845-8768
Fax: 317-688-6420
Cell: 317-512-9618
www.qualityleasingco.com
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05-20-2016, 05:00 PM #4
- Join Date
- Sep 2015
- Posts
- 6
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.
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