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Buying a Full Line Vending Company


grumpy
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I'm looking at buying an on going vending business. This business consist of pop(soda), snack, food (sandwhich) and bulk candy vending also office coffee service.

130 uturn units (4 selections)

150 full size snack/pop/food units (most units older)

at least 70 locations for the full line.

how would one evaluate the worth of the business (purchase price) on assests only or a value added to the locations. is yearly gross income a major factor? What steps should be taken other than running the finacials?

Any help or guidance would be appreciated.

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Grumpy,

A few of our members, namely Baxson Vending and Schmedspub have recently purchased existing vending routes. They should be able to give you some constructive advice here.

I would like to say though that locations themselves do have a certain value. If you can purchase a route for asset value only you will be doing very well.

Steve

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Grumpy:

I would suggest you value the route in three steps:

1. Generate a value for the existing machines by using current market pricing for used equipment (i.e. a u turn (4 way) goes for $100 on craigslist)

2. Evaluate the locations in person.

3. Get some proof of the monthly income for the last 6 months.

The ultimate value will be some combination of these factors. Include age/replacement of older machines, cost of operation, etc.

Some route owners will allow you to purchase using existing cash flow. In this scenario you offer to pay 50% of the monthly gross for 6 months, then make a balloon payment of the remainder at the end of the 6 months or take the option to walk away.

 

Regards,

 

Philo

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