Buying a long haul Fedex route

Exec32

Well-Known Member
Growth will not be the same as it has with Amazon and the USPS taking a larger share of B2C packages which are smaller and lighter.
We will get all the furniture, trampolines, and other incompatibles that your heart desires, and you know as well as I that those will kill your utilization.
There goes the small margin some may enjoy.
 

instiches

Well-Known Member
There aren't many operating businesses you can buy for 3x cash flow and that are growing 10-15% year over year organically. This business is more than acceptable for investors and business people who are smart with their money.
 

dmac1

Well-Known Member
There aren't many operating businesses you can buy for 3x cash flow and that are growing 10-15% year over year organically. This business is more than acceptable for investors and business people who are smart with their money.

Except fedex can unilaterally cancel the contract, will change terms mid-contract, and 15% growth in revenue doesn't equal a 15% growth in profit. It generally means you need to spend 20% more upfront to handle the 15% growth.
 

Exec32

Well-Known Member
Your
There aren't many operating businesses you can buy for 3x cash flow and that are growing 10-15% year over year organically. This business is more than acceptable for investors and business people who are smart with their money.
Not buying a business. You are buying a contract that provides cheap labor to a single customer that calls the shots. That is an insane investment considering the risk involved with a unilateral contract.
Overlevrage with one customer in any real investment and you will subject yourself to every and any demand they make regardless of the negative impact on your so called business.
 
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