How much would you pay for a route?

[shanipaqman]

I was just curious what the forum thought about buying existing routes and what you would consider a good return on investment, assuming you can verify the numbers?  Equipment value?  Stated annual gross income?

 

Next, how do you feel about buying a route that is under the control of one decision maker, say a large chain of stores?  Just curious what your thoughts would be and what concerns if any, you would have in that type of situation?

 

Finally, when dealing with an experienced seller, who is not willing to give the route away, what is the max return on investment time frame that you would consider?

 

This would help me in making a decision on a potential deal.

 

thanks

[musser]

Not to be nosy but where are you located? (you can pm me) There is a large route for sale near me that looks good on the surface, most equipment is placed in one chain, and the route is a financial death trap no matter what the price.

[shanipaqman]

I am in Michigan, and you? This deal is not on the market, I have an inside track before anyone else would see it though. I don't have all the details, just deciding if I want to expand into a full time operation from a part time gig.

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[musser]

Ok, I'm Illinois. There's a big crane route for sale south of me. But the main client of theirs is really not very stable . I looked at it but very very risky business. I hope someone doesn't get burned

Feel free to pm me if you have questions . Buying into a lot of business can be a very good step if the deal is right. I did years ago and it was tough to come up with the money, but I " threw the dice" and it all worked out.

[jimbo7256]

As long as you can get a return within a year or 2 I would say it was good. I would need more detail to give more advice.

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