Buying an ISP

[Goatman]

I am researching buying an ISP route as there are at least three in my area for sale. One is 3 trucks, one has 5, one has 10. The 5 and 10 truck routes have managers in place already as well. Financials look good on all three, but will get into more detail when I sit down with the owners.

Looking for pointers, tips and questions to ask when I meet the current owners of these ISP's starting this Friday. I PM'd MOM and bpsma with no response as of yet. What are the pitfalls and traps that I should look out for? Any specific questions I should be asking?

So far I know I need to know how long they have left on their current agreement with FedEx. What else?

Thanks in advance.

 

[MrFedEx]

I am researching buying an ISP route as there are at least three in my area for sale. One is 3 trucks, one has 5, one has 10. The 5 and 10 truck routes have managers in place already as well. Financials look good on all three, but will get into more detail when I sit down with the owners.

Looking for pointers, tips and questions to ask when I meet the current owners of these ISP's starting this Friday. I PM'd MOM and bpsma with no response as of yet. What are the pitfalls and traps that I should look out for? Any specific questions I should be asking?

So far I know I need to know how long they have left on their current agreement with FedEx. What else?

Thanks in advance.

I'm not an ISP (I work for Express), but a logical question would be to ask why they are selling if the financials are so good? Maybe they're just cashing-out, or perhaps there are other reasons. bbsam is the go-to on here for Ground information.

 

[bbsam]

I am having technical difficulties with the home computer but will reply ASAP. To much to peck on phone.

 

[Goatman]

Thanks!

One of the owners is retiring, the other two I will find out Saturday and Tuesday respectively.

 

[Puppy Trucker]

You will want to know whether home or ground routes or both. What areas will you own, rural,city or both. You really want them to be one or the other preferable, not both. City routes are generally more profitable and valuable than rural, but alot more stops to manage. You need to know the age and condition of the trucks and their value, how many miles are driven weekly. Most contractors write off a corporate vehicle and other tax deductions that you not necessary need to start, have the contractor or their accountant show you these expenses so you can accurately gauge profit. Truck repairs can vary greatly from year to year depending on condition and age of trucks. I would allocate 4000 minimum,more if older.

 

[Goatman]

What is the difference(s) between home and ground?

 

[Puppy Trucker]

Home does primarily residential deliveries, ground more businesses,bulk stops and pickups as well. Ground requires heavier and larger equipment to operate.