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The importance of Due Diligence


Conallvending

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This is a little story about how I almost bought a route that would have been obsolete in a year. I was looking at a route along a turnpike. 3 rest stops and 11 toll booth operator buildings. Route was doing descent sales. He had the paperork to support. All machines were in good shape. I had the letter of intent to purchase from his broker and was about to sign it. I have an EZ Pass transponder for my personal vehicle and received my monthly statement email. Not sure what prompted me to read the whole email as I never had before but I did. At the very bottom was a notice that all toll roads in the state were converting to all electronic tolls by the end of next year. All electronic tolls means no toll takers. I would have vaped 85-90% of the route in a year. I would have also had to store 11 machines until I could try to place them.

The moral of the story is think of every aspect of things that could occure that could destroy your business if looking to purchase a route. I would have been in a world of hurt because it never occurred to me to check to see if all the tolls would be converting to electronic tolls.

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Boy, good thing you learned this when you did.  The seller should have disclosed this but is probably not obligated to.  More than likely he was aware of it and this prompted his sale of the route.

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