Hourly Consulting Services & Due Diligence Support
MyGround Support has professional staff to support you with general consulting services and your FedEx Route Buyer Due Diligence activities on an hourly basis. We are sought out as one of the most elite and knowledgeable in terms of what to look for, what to model, and what the Broker and/or Seller may not want you to find out. FedEx Ground agreements are changing every year. If you do not know the non-financial contractual aspects of FedEx Ground contracting we cannot stress how important it is for you to understand these types of things before making a decision purchase decision. For example:
- Do you know a 30+ % profit margin is impossible in FedEx Ground contracting (approximately 10-15% is the best pre-depreciation profit margin) and Brokers or Sellers are presenting you a 30+ % "cash flow" number that is calculated incorrectly?
- Do you understand all aspects of a FedEx Agreement including the Negotiated Rates in P&D ISP agreements, has the Seller even provided it to you?
- Do you know how the exclusive right to renegotiate / renew an Agreement is obtained?, are you aware P&D ISP Agreements are not automatic renewal?
- Do you know what availability rate you must maintain on a Linehaul run before FedEx Ground takes it back from you?, is the Seller getting close to this rate already?, has the availability rates been provided to you and did you ask?
- Do you know that past financial performance could in no way be indicative of future financial performance given all the changes occurring in contracting terms and service areas right now? Are you aware of all the changing terms and the new vehicle requirements?
- Do you know how important depreciation costs really are in financials in
this line of business?, if depreciation is removed from the equation
you may find that your pre-depreciation profits aren't enough to cover
the cost of replacement vehicles.
If you can't answer all of these questions easily you could be in a situation where you are making a purchase decision on a business you don't understand, and this is just one ounce of the information you should know extremely well to do due diligence. Sometimes our help will identify more key items in just 1 to 2 hours then someone else did in weeks of analyzing. Our fees will be a small price to pay for some of things we may uncover and we have saved some folks hundreds of thousands of dollars off their ultimate purchase price with things we identify.
We require the completion of the following services agreement: MyGround Support Consulting Services Agreement
PLEASE CALL US (240-490-2895) WITH ANY QUESTIONS AND WE ARE HAPPY TO DISCUSS BEFORE YOUR PURCHASE
If you don't use us, we don't take it personal, but please use someone!, going at it alone can leave you with major buyer's remorse.