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Route Value?


The Master Key
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     I would base my route off of annual net income.  From what I have observed people sell for around the net (sometimes gross which is just to make it sound like they make more) of two-three years worth, plus machine values, product values and the like.  Keep in mind if you want to sell fast it won't sell for even close to that.  If you tell someone they can  have a 100% ROI in a little more than 3 years that's appetizing, and 2 years is even better.  I'm not aware of too many other businesses where this is possible. 

 Hope this helps.    I would like to hear how others would value a route.

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Well, brand new to this but from what I can tell 70% of a year's gross is a good price for a route.

Not to get into an argument w/G-Man, but I think 2-3 years of net is way too much. I do have experience with other businesses (just not vending - newbie there) and it is fairly standard to make your $ back in 2-3 years if purchasing a business.

However, from what I can see from researching on the net, 70% of gross is "fair" for vending.

Here is some direct experience:

1) Someone wanted to sell me a route making $50K/yr for $32K. However, he had no documentation to back up the #'s.

2) I financed a full size vending route grossing $80K/yr for the past 3 years for a friend and paid $55K (we close on 9/1). This person had excellent records and tax forms.

3) Just made an offer of $11K for a route making $16K/yr. However, no docs to back it up so withdrew the offer.

Make of this what you will :)

That being said, people sell businesses for more than they are worth all the time. As a seller, get the most you can for it. If you can find someone willing to pay 100% or 150% of gross, go for it :)

Good luck.

Kevin

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Thats not good news Brian. You selling your whole route?

T Bird may be interested. He is looking to expand all the way to Florida. Central Jersey would be a great start! ;)

Steve

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Steve, yea I'm putting the whole route up for sale.  As I had been discussing with you, I got into a new business and it is a better fit for me.

T Bird, don't delay, expand today! :D

Seriously though, if any member of vendiscuss is interested I will offer it at a very fair price.  Send me a PM if you're interested.

Thanks.

Brian

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