jp1977 Posted May 2, 2017 Share Posted May 2, 2017 Hello, everyone! I recently ran into an old friend that I haven't seen in many years. He was always very ambitious, and worked in the food industry for many years, while building the capital to invest in multiple franchise's. He currently owns 6 subways and 2 snap fitness's and also owns his own Business Brokerage firm, where he facilitates the sellingand acquisitions of many different kinds of businesses. I am in sales by trade, but have always wanted to have a side business'(s) to eventually get out of the rate race which is "Sales". One day i was looking up local business's in Minneapolis, MN which were for sale. I primarily do this for fun, as I don't really think I would want to take over a full scale restaurant, (which thats what I was viewing), when I come across my Pal from High School. We decided to meet for lunch, and I made it pretty clear that this is more to catch up, than for him to pitch a business idea past me, but of course, we did both. I certainly trust my friend, but I understand that he stands to make a real nice commission check on these deals as well, being the listing and selling agent, I believe he said he makes 20% ish. Once again I don't believe he is trying to pull one over on me, but having no experience in the vending business I was hoping you lovely folks could look at these numbers and tell me what you think? Sorry for the rambling, here are the meat and potatoes. What do you think? Sorry for the poor format when pasting. The thing that confuses me is that he owns 670 machines, and makes roughly 63K annually after expenses. That means each machine only makes 94$ annually? Also, my friend said the owner only puts in about 20 hours of work every quarter. That seems light to me as well? But thats why I am here asking the experts. What do you guys think of this deal? • The company has been in business since 1980. • Headquartered!out!of!Maple!Plain,!MN! • Seller’s!Discretionary!Earnings!=!$63,000! Type'of'Business:!!Vending!machine!business.!!Most!of!the!accounts!are!in!the! surrounding!areas!of!the!metro.!!The!business!has!over!670!units!in!the!field.! Facility:!!Seller!stores!inventory!and!equipment!in!his!garage!as!a!big!warehouse!is!not! needed.!!!! Employees:!!owner/operator.!!! Gross'Sales:!!$156,000!estimated!!! Asking'Price:!!The!owner!is!asking!$130,000.!!The!owner!is!willing!to!offer!seller! financing!along!with!drafting!an!earn-out!strategy.! Reason'For'Sale:!!Retirement Link to comment Share on other sites More sharing options...
lacanteen Posted May 2, 2017 Share Posted May 2, 2017 Hail no, not even close. Sounds like maybe a gumball route. This is an old friend? Link to comment Share on other sites More sharing options...
QuikVend Posted May 2, 2017 Share Posted May 2, 2017 Definitely sounds like a bulk vending route. 20 hours a quarter, no employees, no warehouse are all clues leading me in that direction. Definitely not snack and soda Link to comment Share on other sites More sharing options...
TKK Posted May 2, 2017 Share Posted May 2, 2017 Bulk route. Link to comment Share on other sites More sharing options...
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