Below is A List of Common Questions We Often Receive From FedEx Sellers.
The first contact Capital Route Sales, Inc. makes with the market of buyers for your business is via a blind (anonymous) profile of your company. Your location is described in general terms and so are the details of your company. Key financials are presented as well as a description of your products and services, along with its opportunities for growth. Your company is not identified in the profile. When hiring Capital Route Sales, Inc. who is responsible for preparing the documentation and handling the marketing process, you can ensure that the process remains confidential.
This also allows you the freedom to continue to focus on running your business throughout the sale process - a key aspect of maximizing your closing price. Capital Route Sales, Inc. has a tried and true process that maintains your confidentiality by only releasing information about your business to qualified buyers who work under our confidentiality agreement.
Yes. For most small businesses, Capital Route Sales, Inc. does not charge upfront fees. We will do a free value assessment that will give you a value range that you could expect in the marketplace. We do this before we contract to list your business for sale to make sure your expectations are realistic. Call us or simply complete our strictly confidential Free Value Assessment Form and we will contact to discuss value.
National statistics indicate the average time on the market for around 82% of businesses is four to 12 months. Fewer than 10% of businesses sell more quickly, and about 8% are on the market for more than 12 months. Price and terms of the sale have the biggest impact on timing. Documentation and records are also a factor.
One year minimum. National statistics indicate that, on average, businesses are sold within four to 12 months.
There are many reasons, but here are a few dominant ones.
- Overvaluation. Many sellers want to "test the waters" and overprice the business. Today's buyer is educated and usually business-savvy. There is so much pricing data available. Buyers know when a business is overpriced.
- Sellers are not willing to finance a portion of the sale price. If the business does not qualify for SBA lending, most buyers are not willing or are unable to pay 100% cash to make the acquisition. In many cases, the seller will be called upon to assist in the financing. Studies have shown that sellers who are willing to finance a portion of the purchase price will receive a higher price.
- Declining business revenues. This is extremely rare in our industry – the few instances in which we have seen declining revenue have been from Contractors selling a portion of their business to meet the ISP requirements.
- Sellers are not willing to negotiate.
- Inaccurate financial records that don't pass buyer's due diligence. At Capital Route Sales, we tackle this from day one to ensure we have a great chance of selling your business!
- Sellers get cold feet and withdraw from the market.
- Sellers, too often, listen to well-meaning outside relatives, friends or advisors who don't have sufficient knowledge of the selling process. Sellers who don't use a professional business broker/intermediary are at a disadvantage. These outside professionals know the marketplace and greatly assist in finding the right buyer. They are a "value-added" service and will more than justify their fees. The seller who represents himself or herself will rarely get the price that a business broker professional will obtain.
- Financing is not available. We work with a network of national lenders who pre-qualify our businesses. Once a listing becomes bank approved, the chance of selling it goes up to 90%!
Based on the size and type of business, the current owner typically stays on for four weeks to train and ensure a smooth transition. Larger acquisitions require a longer period. It depends on how the deal is structured. Typically, in an extended transition, the former owner’s compensation is negotiated based on an estimate of how much would be needed to pay someone in the market to replace you.
Most closings for small businesses take place through signing documents online, or in person.
Once we have a transfer date in place from the parent company, it’s a good idea to hold a meeting with employees and a new owner.
Financial data we review includes the past three years of:
- Tax returns
- Schedule B vehicle list
- YTD P&L
- Route intake form
If you are a delivery contractor, we will be happy to discuss your options with you! Give us a call now!
Capital Route Sales provides all the services required to sell a business, from initial valuation through closing. If you sell the company while under contract with us, you are still obligated to pay the commission in the engagement contract. The service we provide includes sourcing buyers and negotiating the deal, so if you have a buyer in mind, it is extremely important to refer them to us. We will provide professional representation with all buyers so you can concentrate on running your business.
A key part of our valuation is to help our sellers uncover potential financial gains. Sometimes these gains will need to be played out over a year or more to help increase the business value; sometimes they are instant. Each route owner has its own unique set of routes, and we walk you through every option.