Operationally Solid - Financially Weaksmart_display

This FedEx linehaul trucking business is listed at $2.24M, generating about $2.78M in revenue and $497K in cash flow.

It includes 10 routes, a full fleet, a team of drivers, and a manager in place.

On paper, it looks like a clean, semi-absentee logistics operation.

But once you run the numbers, the deal falls apart.

Deal Snapshot

Let’s run it through a standard SBA-style scenario.

Financing Overview

After debt, you’re left with about $167K per year.

For a $2.2M deal, that’s weak.

Where It Breaks

You’re paying too much for what you’re getting.

• Overpriced: 4.5x vs ~2.7x industry average.
• Below-average margins: 17.9% vs ~23.1%.
• Thin post-debt income: ~$167K on $2.2M price.
• Limited cushion: DSCR only 1.55.

You’re paying premium pricing for below-average performance.

The Illusion

This looks like a “hands-off” business.

But trucking doesn’t work that way.

• Driver management: Hiring, retention, scheduling.
• Fleet risk: Maintenance, breakdowns, replacements.
• Contract dependence: FedEx controls the relationship.
• Cost volatility: Fuel, labor, insurance.

Manager in place helps — but it doesn’t remove the risk.

Industry Risk

This is not a low-risk sector.

• Higher default rate: ~5.6% vs ~3.6% overall.
• Margin pressure: Costs can shift quickly.
• Contract risk: Terms can change over time.

Even “stable” routes come with real exposure.

What This Really Is

This is a solid operation with weak deal structure.

• Good systems
• Experienced team
• But overpriced entry point

The business may work — the deal doesn’t.

BizHub Verdict

This deal scores a 4.7 / 10.

Operationally solid — but the valuation and thin returns make this a weak investment.

Good business. Bad price.

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