How to Sell a Postal Mail Center

Sell a Postal Mail Center

Are you considering the sale of an AIM mail center or Eagle Postal Center (or another type of postal store or mail center)? This guide helps you determine how to value your postal mail center to determine if and when you sell. We also help you prepare for the sales process by providing a step-by-step guide as to how the process works.

About The Postal Mail Industry

Postal mail centers such as AIM mail center and Eagle Postal offer services that remain in high demand. The most common business types within the industry include:

  • Mailbox rental companies
  • Postal and mailing companies
  • Office support companies

 

Mail delivery, mailbox rental, and other services provided at postal mail centers remain in high demand and should continue to have a high demand for the foreseeable future. Established centers have little competition as well. Consequently, there is a relatively high demand for postal mail centers. 

Business Valuation: Rule of Thumb Data for Postal Mail Centers

Your business valuation estimates how much you can get for your postal mail center (or your interest in the company) if you were to sell. A professional valuation considers a range of factors, and there are also different valuation methods. Notably, your valuation considers your unique competitive advantage, the quality of the operating systems (i.e. mail delivery), growth potential, and your reason for selling.

Of course, financial data is the primary valuation metric. This includes your seller’s discretionary earnings (SDE), earnings before interest, taxes, depreciation, and amortization (EBITDA), gross profit, and net sales. Acquisition multiples are also considered. This is similar to comparables during a real estate appraisal. They consider sales data for postal mail centers to calculate averages; this data is known as “rule of thumb data.” The rule of thumb data for postal mail centers include:

  • Postal mail centers sold between 1.81 to 6.91 times the Seller’s Discretionary Earnings (SDE)
  • Postal mail centers sold between 0.12 and 0.79 times the annual net sales
  • Postal mail centers sold between 2.78 and 7.44 times the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

 

Valuation multiples are not always the best metric for determining the value of a postal mail center as there is not enough sales data, although it still plays a role. As discussed, many other factors play a major determining factor in the fair market value of a postal mail center.

The Sales Process: What Steps Are Involved?

The sale of a postal mail center is much different than other types of business sales. All steps should take place in confidentiality to ensure business operations and profits are not disrupted due to uncertainties surrounding the business (which could arise if the sale is not confidential). So, what is the process?

Business Valuation

Well, as discussed, the first step is to receive a business valuation. This indicates how much your stake in the postal mail center is worth and determines fair market value. With this information, you can decide if you should sell right away or work toward improving your valuation and sale at a more opportune time. 

Prepare Documents

Once you decide to move forward with the sale, you need to prepare everything you will need. This may include working with an attorney, CPA, and your business broker to collect and organize financial, operational, and legal documents that might be needed during the negotiations, due diligence, and closing stages. Next, your business broker will bring your postal mail center to the market in a confidential manner. They utilize networks, databases, and their contacts to find you a buyer at or above fair market value. Your broker also assists with negotiations, which can be tricky in many cases. 

Letter of Intent

The marketing stage should end with a letter of intent (LOI) from a preferred buyer who meets your goals for the sale of your postal mail center. Once the LOI is received, the due diligence process begins. The buyer can request and review business documents during this stage. A walk-through of your postal mail center ad review of daily operations may occur as well. After due diligence, the sale is completed at a convenient time for both parties. The seller and buyers’ attorneys are usually present during the closing. In some cases, the business broker attends to help ensure the closing goes smoothly. During closing, final signatures are attained and the transfer of the business begins. Once the sale is complete, the seller can move to the next step of their exit strategy.

Receive a Free Business Valuation With Sigma Mergers and Acquisitions

We provide postal mail center owners with a free, no-obligation business valuation. We understand that not every business is ready to sell right away, and we help you determine the worth of your company so that you make informed decisions about its future. For more information or to get started, schedule a consultation today.

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Scot Cockroft Business Broker
Hi, I’m Scot Cockroft.

When I founded Sigma Mergers and Acquisitions back in 2003, I had sold my business the year prior.

Now, that can sound good, but let me tell you, back in 2003, it was not easy to sell a business. Not that I’m saying in modern day times it’s easy to sell a business, but back then I interviewed broker after broker after broker, and no one was interested in actually seeing the value that my business brought to the table.

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Sigma is a the leading business broker in with Corporate offices in Dallas/Fort Worth with roots from 1984. Over 600 businesses sold in Dallas, Fort Worth, Texas, Oklahoma and across the South. Sigma provides full business brokerage services with NO upfront fees. We provide Market approach business valuations for business sales. Sigma is passionate about helping business owners achieve their goal of financial security. Contact us today for a free no obligation business valuation. We are here to help you achieve your goals.

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