A presentation by KR Capital LLC which details the process of selling FedEx ground and home delivery routes. FedEx contractors who are interested in selling their routes will find valuable information on how their routes are valued and sold to outside buyers. KR Capital LLC is an industry leader specializing exclusively in the sale of FedEx delivery routes. Since its inception, KR Capital has worked with FedEx contractors nationwide to successfully value, market and sell their routes for the highest value possible. Our targeted approach to FedEx route sales positions us as a best-in-class resource for any FedEx contractor looking to sell their routes for top dollar. For more information, visit us at www.DeliveryRoutesForSale.com.

1. The FedEx Route
Sales Process
www.KRRouteBrokers.cominfo@KRCapLLC.com (503) 664 – 0753

2. Introduction
The FedEx Corporation allows its independent contractors to
privately sell their routes to any qualified buyer of their
choosing, so long as the new buyer meets the FedEx
contractor requirements. FedEx does not participate in the
negotiation of the sales terms; their involvement in the deal is
limited to qualifying the new buyer and transferring the routes
into their corporation.
www.KRRouteBrokers.cominfo@KRCapLLC.com (503) 664 – 0753

3. Sales Process Overview
Contractor
expresses interest
in selling routes
Engagement
agreement signed
to sell routes
Route package
compiled /
valuation
determined
Buyers solicited,
NDAs signed,
financial
qualification
Buyers given route
package for review
Q&A session
between buyer and
seller
Buyer submits
letter of intent
Buyer undergoes 3-
4 week due
diligence period
Purchase
Agreement drafted
Escrow opened and
deposit made by
buyer
Buyer submits RFI
to FedEx and
begins background
check
Closing/Fund
Transfer/Route
Transfer upon
FedEx Approval
www.KRRouteBrokers.cominfo@KRCapLLC.com (503) 664 – 0753

4. Valuation Considerations
• FedEx routes are sold on a multiple of earnings
• “Earnings” are defined and calculated by re-casting P&L to reflect the
normalized profit that the business produces. This typically involves
identifying the annual core operating business expenses (fuel, payroll,
insurance, repairs & maintenance, debt service, etc.) and subtracting
that figure from the annual gross income
• Once the “Earnings” figure is identified, an industry multiple is applied
and the resulting figure is a suggested asking price. (Generally we ask
for a 2.5 – 3x multiple of earnings)
• Depending upon the debt service of the fleet, the valuation may change
considerably.
www.KRRouteBrokers.cominfo@KRCapLLC.com (503) 664 – 0753

5. Offering Memorandum
When compiling an overview of a group of FedEx routes, the following
items are typically included in the package that will be presented to the
buyer:
• 1099 for previous year
• “Normalized” profit and loss statement that reflects any
discretionary (non-business) or one-time expenses
• Overview of the vehicle fleet (year, make, model, mileage, debt)
• Employee list (name, tenure, compensation)
• Geographic overview of the routes
• Sample settlement statements
• Tax returns / 1120s from year(s) prior (typically provided during due
diligence)
www.KRRouteBrokers.cominfo@KRCapLLC.com (503) 664 – 0753

6. Sample Buyer Activity
Below are some buyer statistics for a transaction we completed in May, 2013:
# of times opportunity was displayed to a buyer: 4,888
# of buyers who read the details of the opportunity: 417
# of e-mail inquiries received: 37
# of incoming phone calls: 29
# of NDAs sent out to prospective buyers: 48
# of buyers financially qualified (need at least $500k liquid cash): 19
2 offers received
Cash deal accepted by seller
www.KRRouteBrokers.cominfo@KRCapLLC.com (503) 664 – 0753

7. For Additional Information
Contact Us!
Tel: (503) 664 - 0753
info@KRCapLLC.com
www.KRRouteBrokers.com
www.KRRouteBrokers.cominfo@KRCapLLC.com (503) 664 – 0753