Latest GCF Market Intelligence Report for FedEx Routes

March 21, 2024/Adam Armstrong

Our good friends at GCF Business Valuations are out with their latest market intelligence report. Here are the key takeaways from the report: 

  • This report is geared toward the P&D side of the business. Line haul businesses are typically priced higher. 
  • Evaluating the useful life of the trucks dictates the proper CAPEX requirement, which will impact value. 
  • The average engine life is 300,000 miles.
  • A minor engine overhaul can increase the engine life to 500,000 miles. 
  • Major overhaul or engine replacement is a $25,000.00 CAPEX
  • Route owners rarely purchase new trucks because it’s less expensive to maintain the existing fleet. 
  • Salary expenses should be between 30% to 45% of revenue.
  • Maintenance expenses should be at most 15% of revenue. 
  • Multiple routes/larger territories will drive higher multiples of SDE/EBITDA.
  • Average revenue was $2,075,706
  • Average SDE was $398,061
  • Average multiple 3.77x
  • Click for a large image: FedEx-Routes_-GCF

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