royalforest Posted December 10, 2009 Share Posted December 10, 2009 How do you handle the conversion, guarantee you are getting the numbers they are telling you, and making sure they are not losing an account and selling it to me? Any info will be a big help. Thanks Link to comment Share on other sites More sharing options...
jore0802 Posted December 10, 2009 Share Posted December 10, 2009 Bought a soda machine w/ location more than a year ago and the seller double the amount of the gross sales. Link to comment Share on other sites More sharing options...
JPVendCo. Posted December 10, 2009 Share Posted December 10, 2009 How do you handle the conversion, guarantee you are getting the numbers they are telling you, and making sure they are not losing an account and selling it to me? Any info will be a big help. Thanks records. if they dont have records, or a contract the location is only worth the value of the used equipment. even if they do have records they could be false anyway. go with your gut on that. Link to comment Share on other sites More sharing options...
mission vending Posted December 10, 2009 Share Posted December 10, 2009 records. if they dont have records, or a contract the location is only worth the value of the used equipment. even if they do have records they could be false anyway. go with your gut on that. I'll second that. If you are that uncomfortable buying the route then you might want to rethink it. You should expect to lose some business in the transition, factor that into your offer negotiations. Another option is to include some agreed revenue guarantees in the purchase agreement and then have a third party hold a % of the funds for 30 days and depending on the result one party releases the money to the other. The difficulty is that he could say you are not servicing the route properly to artificially reduce the numbers. So for me, best option is to write a check and get on with it. Link to comment Share on other sites More sharing options...
mxer518 Posted December 10, 2009 Share Posted December 10, 2009 very much agreed, if you don't feel right about the transaction then walk away or rethink the price that you are looking to spend. as far as revenue guarantees they never work, and if there are sloppy records or no records of the income from the stops then you need to factor that into the price and be willing to face the fact that you will loose an account or two and the numbers being provided are not accurate. Link to comment Share on other sites More sharing options...
mission vending Posted December 10, 2009 Share Posted December 10, 2009 as far as revenue guarantees they never work, Wait a minute, never say never. I met a guy at the NAMA convention, 8 years ago, from New Mexico. We hung out for most of the weekend. He claimed that he made a deal with a revenue guarantee work, don't know if he was full of BS or not, but he did make the claim. Reminds me, gotta give him a call and see what he is up to. Link to comment Share on other sites More sharing options...
Poplady1 Posted December 11, 2009 Share Posted December 11, 2009 According to the FTC, a business cannot guarantee income upon sale of that business. So if you put it in a contract in all likely hood it will not hold up in court. You can certainly try putting some funds in escrow but normally everybody just sues everybody. Run the route with the seller for a month, watch the product going in and money coming out. Once you are comfortable with the machines you are buying, the locations they are in and the income you see coming out, write the check and take it over. The worst that can happen is you have to relocate the slow sellers. My two cents. Blue Moose Link to comment Share on other sites More sharing options...
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