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Retiring vendor selling me his machines


ianhenry317
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I found this retiring bulk vendor (he's like 80) who is selling off his routes and machines.  I'm curious how I should value what he's selling.  He has OAK Vistas doubles for $65 each.  I bought 2 but I'm not sure if I'm getting a deal since they're used.  He also has a 19 location route in my town that he's selling for $6000.  I'm not sure how to come up with a valuation.  How would you?

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See the records from the past years.  I would go no higher than his net income in one year.  And for 19 locations (double heads if I understand correctly) take the National average ($7-8 a head per month) and multiply it by the # of locations.

$8 X (19 X 2) = $304 a month.  And $304 X 12mos. = $3,648 which is still a little steep to me. 

Think of it this way, if the man is 80 he's probably not too motivated to go service all of those machines.  Shoot him a low-ball offer ( $2,000 cash on spot )and see what he says.  You can always offer more.

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The machine you got was a good deal. Buy the machine and the location but NEVER buy the profit the machine will make. Meaning I would pay X for the machine and 20.00 for it being on location. If he wants the money the machines are GOING to make he should just keep them and collect it himself.

Mike

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