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Valuating a Business for Purchase


gcobio

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I may have an opportunity to purchase a vending route.  What are the important things to look at or review in terms of knowing that the selling price is accurate?  What are the red herrings that I need to disregard?  I want to be sure that it is a business worth purchasing, but I also don't want to overpay.  All responses are welcome...

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I may have an opportunity to purchase a vending route.  What are the important things to look at or review in terms of knowing that the selling price is accurate?  What are the red herrings that I need to disregard?  I want to be sure that it is a business worth purchasing, but I also don't want to overpay.  All responses are welcome...

This usually requires a couple of trips with the seller to verify accurate sales numbers.  Many locations for sale tend to be the guy's bottom feeder he's just trying to dump.  You need an account that does north of $500 a month to be worth your time.  You'll want avoid any combo only locations and locations that are having obvious vandalism problems.  Ask about commissions if any and tell us exactly what equipment is being offered.  A great location with crappy equipment might still be a good buy as it would be worth an equipment upgrade but a low performing location even with good equipment is not worth fooling with almost at any price.  Your question is rather broad but has been discussed many times here so you may want to do a site search on "locations for sale".  I recommend not spending a penny until you run the actual deal by us first, we hate it when somebody comes on who just bought a pile of crap and is looking for a way to make it work.  Rarely do low performing accounts ever work out.

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