Why Choose Capital Route Sales?
- With former FedEx Ground Contracts of several years, we have been in the trenches and understand what it takes to run a successful route business!
- We are experienced in completing hundreds of route transactions
- We are a professional company that has been successfully satisfying the needs of clients in the sale of their businesses for almost four decades.
- We are a full-service firm, providing all of the services required from the initial appraisal to the final closing.
- We are able to provide superior service with automation and modern technology to qualify buyers, to execute non-disclosure agreements, to track disclosures to potential buyers, and to give monthly reports to all clients listed with us.
- We DO NOT charge up-front fees for our standard listings.
- We are not a franchise.
Understanding the value of your business:
When valuing a business, there are three general approaches to determine value: The Asset Based Approach, the Market Approach, and the Income Approach.
Within each of these approaches, there are various Appraisal Methods used to determine value. The Asset-Based Approach method adjusts assets from their reported book value to their in-place market value, utilizing cost and market data. The Market Approach method produces a value using comparative ratios derived from past transactions of closely held and/or publicly held companies. The Income Approach method capitalizes some level of earnings into a value using a multiplier.
A key component of the Income Approach and the Market Approach is the level of earnings which will be converted into a value using a capitalization concept or comparative valuation ratios concept.
There are standard levels of earnings typically used by appraisers, business brokers, and investors. They include the following:
Discretionary Earnings - The earnings of a business enterprise before the following items:
- Income taxes
- Non-operating income and expenses
- Non-recurring income and expenses
- Depreciation and amortization
- Interest expense or income
- The owner's total compensation for those services could be provided by a sole owner/manager.
EBITDA - Earnings before interest, taxes, depreciation, and amortization