A route for sale is usually pitched as recurring revenue plus a truck. You are actually buying a bundle of customer relationships, contracts, operating habits, equipment, and obligations. Some may transfer; some may disappear the day the seller leaves.
Reconstruct a normal week
Ask for a customer-level schedule, invoices, bank deposits, cancellations, service logs, route maps, vehicle records, disposal or vendor receipts, and payroll. Reconcile billed revenue with collected cash. Ride along where permitted and time a full day from departure through the final unload. Note jobs that depend on the seller's personal relationship or unpaid family labor.
Compute contribution by customer and by route day after direct labor, owner replacement labor, vehicle costs, supplies, disposal, and callbacks. Then allocate overhead. A route with high sales but scattered stops can be less valuable than a smaller, concentrated one. Request a downside case for losing the largest account and for replacing the seller's labor at market cost.
Check what really transfers
Review customer agreements for assignment, termination, price-change, and service-level terms. Confirm equipment ownership and liens, vehicle condition, leases, licenses, permits, insurance, and any environmental or disposal obligations. Have counsel and an accountant inspect the actual transaction documents and tax records. Do not assume a business license or customer contract automatically follows the purchase.
- Call a sample of customers with the seller's permission and confirm expectations.
- Compare the last 12 months of jobs with deposits and seasonal patterns.
- Identify concentration: what share of contribution comes from the top few accounts?
- Price repairs, working capital, transition training, and customer churn.
- Put any handover and customer-introduction obligations in writing.
Pay for verified economics
A seller's asking price is a starting point, not evidence of transferable profit. Base your offer and deal protections on verified records, legal review, and the risks you will inherit. Walk away when the records cannot explain the claimed earnings.
The SBA guide to buying an existing business recommends thorough due diligence and professional help. Compare this path with buying versus starting an ugly business and route-density math.
