Divorce

[Broncho]

I found out today that my marriage is over and I had no idea. Well I did, but I thought we would make it through anything. More on that at the end, but I need some help from the larger guys. I have decided that it would be best to sell the company because I dont have any passion anymore. It was taken from me completely tonight and though I realize that a lot of this was my fault, I need to fix it to take care of my little girls. My biggest concern with the worth of the company is that we were in a reinvesting stage and we took out some major loans for some contracted accounts. Im going to give you some real numbers and you guys try and help me evaluate the business to see if I can get enough from it to retire. I will still work a normal job but I dont know what that is at this point.

 

2011

Gross $1,146,000

Gross Profit $367,068

Net after expenses $158,360

 

2012

Gross $1,400,000

Gross Profit $486,724.60

Net after expenses $220,038

 

I signed 2 major contracts this year and am expecting to make this much extra:

$216,000 for vending and $100.000 in coffee based on sales so far for the year.

 

We are also up about 15% for the year and the previous years were a little rough because the recession was just ending.

 

So I am looking at for this year 2013:

Gross $1,700,000

Gross Profit $590,000

Net after expenses $260,000

 

We have about $380,000 worth of equipment based on my depreciation. Around $200,000 in trucks/ This may be a little incorrect since I cashflowed over $30,000 in coffee machines this year alone that I know of for one account.

 

I have around $250,000 in debt for trucks and equipment.

 

Based on what I have read in the past, I should be able to get 50% of Gross + wholesale value of equipment

 

So $750,000 + $400,000(trucks and equipment reduced for wholesale pricing)

 

I also have around $50,000 in product on site at all times and $60,000 cashflow for product purchases. As well as tons and tons of parts!

 

That is only $1,100,000 - $200,000 in debt for the whole thing! I was hoping for closer to $2 million but I dont know.

 

I may have more machine value but I dont know until I go through everything. All I know is I cant do this anymore and without my wife it is impossible! I have lost all hope and within 24hrs our marriage is completely busted due to my neglect and her need for companionship beyond me. Im not really sure what all happened with my wife and the other man and I really dont care. I fought with her all night tonight because I was angry, and I wish she knew how sorry I was. Most of you dont know this, but I am only 28 and I have 2 daughters 5 and 8. I love my wife dearly and I know I will never have a love like this again because she made me and this company what it was over the past almost 7 years she was with me in it. Im not angry anymore, I just want out of this job and I want to help her get her own house and living arrangement situated. I was a very bad husband because of this job and my hours that I worked. I just hope you know that I am sorry my love and that I wish we had another shot at this...

 

[AZVendor]

Broncho,

 

I feel for you, man.  I handled my first marriage in much the same way with the exception that I used the business as a reason to not be home sometimes.  I ran 3 full routes and always had to fill in for missing drivers, do the service calls, move machines and manage the routes.  I never had the support of my wife because I devoted so much time to vending.  It really shows now in my naive, know-it-all 26 year old daughter who I'm still waiting to grow up because I left her solely in the care of my wife who was rightly angry at me for never being home.  I have, by the way, found a wonderful woman who I've been married to for 11 yrs. now.  I'm so much older and wiser? now.

 

It sounds like you need to take a step back and breathe a little.  This is too large a decision to make this quickly, including posting so much proprietary information about your company.  You have a very successful business going and growing and it can easily be done without your wife, if you can still enjoy doing it.  You need to try to take the emotion out of the business and run it like a business only.  Don't blame the business for what went wrong in your marriage - that takes two people.  Consider the failed marriage as a victim of your business not being run by enough qualified people.  Selling the business will not solve the marriage problems or make a better life for you, it would be like closing the barn door after the horses got out.  Heck, you don't even know what you would do in another job yet.  If vending didn't seem like a job to you last week, then you probably won't look at it as a job a week from now.  You will hopefully still enjoy it as much as you did in the past.

 

I don't want to encourage you to sell, but you probably know there are a variety of ways to value it and you should probably seek some professional help before selling.  Marc Rosset of Professional Vending Consultants would be a good one to talk to.  Marc is also a broker who can find you a qualified buyer.  If you have no bottler-owned machines (they aren't assets) and no vending management accounts you will have higher value.  Value will start with good records, late model equipment, solid location contracts, market pricing or higher, inventory, imprest funds (the cash in your changers) and low commissions.  You can add value with a website and your goodwill.  Your liabilities are, of course, all your debt, commissions owed, payroll, sales tax and income taxes owed and the possibility of recapture of depreciation upon transfer of assets to a buyer.  From the discussions you have been involved with I can tell that you have added great value to your business in software usage and route management.  Your shift to prekitting is key to your efficiency.

 

Please take your time making any decisions for a while and feel free to PM me if you would like to talk things over.

[Broncho]

Broncho,

 

I feel for you, man.  I handled my first marriage in much the same way with the exception that I used the business as a reason to not be home sometimes.  I ran 3 full routes and always had to fill in for missing drivers, do the service calls, move machines and manage the routes.  I never had the support of my wife because I devoted so much time to vending.  It really shows now in my naive, know-it-all 26 year old daughter who I'm still waiting to grow up because I left her solely in the care of my wife who was rightly angry at me for never being home.  I have, by the way, found a wonderful woman who I've been married to for 11 yrs. now.  I'm so much older and wiser? now.

 

It sounds like you need to take a step back and breathe a little.  This is too large a decision to make this quickly, including posting so much proprietary information about your company.  You have a very successful business going and growing and it can easily be done without your wife, if you can still enjoy doing it.  You need to try to take the emotion out of the business and run it like a business only.  Don't blame the business for what went wrong in your marriage - that takes two people.  Consider the failed marriage as a victim of your business not being run by enough qualified people.  Selling the business will not solve the marriage problems or make a better life for you, it would be like closing the barn door after the horses got out.  Heck, you don't even know what you would do in another job yet.  If vending didn't seem like a job to you last week, then you probably won't look at it as a job a week from now.  You will hopefully still enjoy it as much as you did in the past.

 

I don't want to encourage you to sell, but you probably know there are a variety of ways to value it and you should probably seek some professional help before selling.  Marc Rosset of Professional Vending Consultants would be a good one to talk to.  Marc is also a broker who can find you a qualified buyer.  If you have no bottler-owned machines (they aren't assets) and no vending management accounts you will have higher value.  Value will start with good records, late model equipment, solid location contracts, market pricing or higher, inventory, imprest funds (the cash in your changers) and low commissions.  You can add value with a website and your goodwill.  Your liabilities are, of course, all your debt, commissions owed, payroll, sales tax and income taxes owed and the possibility of recapture of depreciation upon transfer of assets to a buyer.  From the discussions you have been involved with I can tell that you have added great value to your business in software usage and route management.  Your shift to prekitting is key to your efficiency.

 

Please take your time making any decisions for a while and feel free to PM me if you would like to talk things over.

I think I have already made the decision to sell. This is not the first time I have been through this with her and this time I need to step up more for the kids. I hope I can salvage my marriage, but I think I messed that up with anger this morning. I wish she would of just stopped texting the guy after I confronted her. At least long enough for us to talk things through a bit... I love my wife more then anything on this earth and I dont know what to do...

[AZVendor]

I encourage you to seek some personal counseling if only to find some comfort that you aren't a terrible person.  Seek out a clergyman or help from an actual marriage or personal counselor.  I did this in the past and felt much better after speaking to a professional a few times who had no stake in the matter.  I'm glad you still have feelings for your wife and a desire to keep the marriage going. 

 

Even though you may have been mulling the sale over for a long time, please take some time now to evaluate everything and don't make any rash decisions.  You could still have a very successful business with a good management staff in place, leaving you time for the family. 

[Broncho]

I encourage you to seek some personal counseling if only to find some comfort that you aren't a terrible person.  Seek out a clergyman or help from an actual marriage or personal counselor.  I did this in the past and felt much better after speaking to a professional a few times who had no stake in the matter.  I'm glad you still have feelings for your wife and a desire to keep the marriage going. 

 

Even though you may have been mulling the sale over for a long time, please take some time now to evaluate everything and don't make any rash decisions.  You could still have a very successful business with a good management staff in place, leaving you time for the family. 

Thats half the issue. The area is so bombarded with good paying jobs that I cannot keep most employees. We are probably at the height of this economic boom and I could probably get enough to restart my life. I just hate how much in taxes I will have to pay out

[Lake Cities Vending]

I've been there and I really feel for you. Its hard but you really need to step back for a few days and think things out. I agree with getting some personal help.

[moondog]

I'm not one of the "larger guys" here, but we've all been through this to one extent or another.  For me,  any decisions I made in the heat of the moment always turned out to be the wrong ones.  Give this thing some time -  in three months you're going to see a lot of things in a different light.  I'm sure this is not the answer you wanted to hear right now but it's "tried and true".

 

Good luck man

[adog]

Sorry to hear that. But Broncho if you do feel you don't have enough time why not sell some of your smaller accounts way off and keep your major player accounts? Im n California and I know in these economic hard times finding a job that makes 50k most people are happy about.100k Most people don't make anymore. So looking at your numbers it looks like you could sell a lot of accounts work alot less and still make great money (100k-ish). 

 

I've had fights with my girlfriend over vending already and I am only three months in. But honestly I know this part was mostly my fault because I would go to her house or she would come here and getting into it and starting out I was very eager and excited. So I was always talking about it, on craigslist and vendiscuss. We've both compromised since but I mean I only own a small route of bulk candy machines. currently. No where what your company is!

That Company is an Achievement Broncho. Your making that much at age 28 dude. Thats insane. Higher some help and pay them a salary of 50k and you would still be good and they could be a route driver for you and let you expand even more without requiring extra time.

[Sparta_Automation]

 

 

Hang in there.....it is rough to go through this.  It seems pretty dark right now, and it may not get better, but having a chance to let things settle may help.  Cooler head may prevail and sometimes, the grass is not greener on the otherside and they find that out sooner than later.  Remember, there are kids involved and they will certainly need emotional support from all involved!

[dkochan]

I would not sell your vending business because you built something rather successful at under 30 years of age. Besides, you need income to support your children. I suggest some cooling off time and, maybe some time of separation between you and your wife. Your wife may realize that being on her own is not so easy.

Have you tried marriage counseling? Divorce is very expensive financially and emotionally. I would try to work things out for the sake of the children. Good luck.

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[spdydre]

Ive seen this happen so many times down here vendors getting wiped out due to divorce.  If you and your significant other are not on the same page it is a formula for disaster. Dont blame yourself either.  Ive seen two or three vendors on here blaming themselves when their marriage doesnt work out and blame vending.  Vending isnt the problem

[jj54]

Take some time to let cooler heads prevail, i'm a older man with time lost on such matters, take some sound advice do not sell at this time, you may not get your wife back no matter what you do, if there is a nother man in the picture your children needs must be meet first which means they need money as well as your stranght, you can make it work with out her she took time to find her a nother man then how much time did she put in the business and the children? this is what i wood be thinking about, give it some time things do get better been there and done that, pray that you do the wright to the children they need their Dad. Thats you!!!