P&D routes are selling for a 3.71 multiple!

We just received this data from GCF Valuations, a third company valuation company that performs independent valuations for banks on FedEx deals.  In this data, of 188 SBA transactions, the national multiple for route sales is 3.71! Other interesting notes:

• Average avenue: $1,912,916.00
• Average SDE: $357,856.00
• Average EBITDA $294,269.00
• Average Price/Revenue 0.71
• Average P/SDE 2.91
• Average P/EBITDA 3.71x2021-GCF-Fed-Ex-MKTQ-Reports
• The average engine life is 300,000 miles
• A minor (engine) overhaul increases 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 should be between 30% to 45% of revenue (It’s usually 45% to 55%!)
• Maintenance expenses should be above 15% of revenue
• Multiple routes/larger territories will drive higher multiples of SDE/EBITDA

Source: 2021-GCF-Fed-Ex-MKTQ-Reports

opinion of value