The number 1 concern on Buyers mind is the ISP transition and how to navigate the transition. For those of us in the know, the latest news that you have to have 100% overlapping is not news at all. They have been warning everyone for quiet sometime about this requirement. In the long run, this is going to be a great business move and will make for routes with higher efficiency, less wear and tear on the vehicles, and less fuel consumed= More money for the operators!
How do I navigate Buying routes in states that have not converted to ISP?
It’s still business as usual in every state, up to the transition date. In some instances, you have almost 2 years to left prior to the transition.
First find out when that state will begin the transition. Make sure the routes are contiguous and find out if the overlapping contractor is willing to sell their business to you. I would make this a contingency with the Seller. If they are not willing to sell you will need to walk away.
What should I stay away from?
• Routes that are scattered across various areas and that do not touch each other.
• Routes where the overlapping contractor does not want to sell. This could potentially involve getting the parent company involved to resolve who wins.
• Routes with trucks that are in poor condition. This may involve additional capital to fix to contract standards.
If you have been looking at set of routes to Buy be sure to get a second opinion. Send us an email at Sales@CapitalRouteSales.com and put route evaluation in the subject line along with a synopsis of what you are looking at. We look forward to hearing from you!