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How to get out - the plan


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I'll be moving in a little under a year. I plan to take some machines with me and rebuild part of the business. I expect to be in an MBA program and won't want to run as many machines while I'm studying. I could use advice on how to structure selling my business. This is the brainstorming phase.

What things will add significant value to the business? I'd like to be selling about 8 months from now.

How would you finance someone purchasing something this large? Would you separate it into multiple sales?

My route is grosses an average around 2500/month, and includes several machines that are not on location. It also has 5 high quality coin machines. (New this model is running 1800ish, some have upgraded bill validators)

There are only a few crappy machines, IE Vendstar, in the fleet.

I'd rather base sales on the machines / locations than cash flow because I'm using high value machines. If anyone on here would value two vendstars making 50$/month the same as a a 5 way northwestern rack making 50$/month, let me know. I may have some vendstars to sell you.

I'm expecting to sell all the change machines--they are "Rowe C-2", anyone with estimates on what they consider these machines to be worth? My personal estimate is about half of new value. 900-1000 w/ the upgraded validator (which takes it from being a 1-5 machine to a 1-5-10-20). These machines have a small footprint and hold 400$ in quarters. I'll have 400$ in change/bills inside the machine, but please exclude that from your calculation. I obviously value cash at its equivalent in other cash...

I can hardly believe this, but I'll probably be selling off about half, maybe even a little more, of my 1800 50-cent toy triples. These are in almost all in excellent condition. Estimates on how much these are worth?

I'll be selling off several spirals, is 200$ per reasonable?

I have tons of northwestern super 60s w/ cap wheels and 50 cent mechs. Excellent to mediocre condition. Value on a NW super 60 w/ cap wheel and 50 cent mech?

Racks as large as 12 products.

The significant majority of these machines are on location. How would you value locations? They range from incredible to awful crap I should have pulled months ago.

I'm not planning to take fire sale prices. If I can't get a reasonable value I'll pack my **** up and move it cross country. I estimate the vast majority of the value is in the machines themselves.

For those with experience buying routes. I would intend to leave the machines with normal amounts of product and estimate the total product on hand and in machines and value it at cost. Would this work for you? I've seen several people suggest writing off the entire value of the product since you don't know if it will sell. If they place no value on the products I'll run everything empty before selling, but that's really a counter productive way for them to have to re-order the same products. Glow in the dark pet friends are going to be a solid seller for quite a while. I would accept a slight write off in terms of candy.

If you have experience selling a business, how did you handle the financing of the transaction? Do we still have that guy who bought around 100 vendstars on cash flow? I'm really curious about the financing arrangement made when he purchased the business. I have concerns about anyone following through and paying the debts when I am out of state and can not reclaim the equipment.

It may be in my best interest not to be paid for 2-3 years because of the effect on income and fafsa. Any idea how to set up an account where they pay the bank for 2-3 years in monthly payments and then the bank makes the money available to me? Or a way to set up a trade where it could be handled differently for taxes?

Don't worry, I won't be gone! I'll just be in a better climate with no more of this stupid midwest freezing for 4 months at a time!

PS. In case anyone asks, I'm moving to Colorado. ;D

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Here is my plan on getting out of the business one day. Sell your route to a local church. Churches are always looking for more money tithes are way down everywhere. All churches have a core of older/retired guys that want to help and are tired of watching The Price is Right everyday and want to do something. Talk to the pastor about buying the route for his church. He has the advantage of being tax exempt and having trustworthy free labor to service the route. You would just have to come to an agreement of paid in full or terms. The church isn't going to skip town and would be trustworthy to make the payments. Therefore you'd avoid the experienced vendor that wants it for nothing and the newbie who will have false expectations and may be a pain in golpher.

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Current route is in the Iowa city to Cedar Rapids area (in Iowa). Moving to Colorado Springs, CO. Selling to a church is an interesting idea, but I'd be concerned that their free labor may not have the business knowledge to maintain the accounts. Either way I plan to offer a year or free counseling to the buyer. Whatever they need to know about the business, machines, or accounts.

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  • 2 weeks later...

I'll be moving in a little under a year. I plan to take some machines with me and rebuild part of the business. I expect to be in an MBA program and won't want to run as many machines while I'm studying. I could use advice on how to structure selling my business. This is the brainstorming phase.

I'll be following this thread as I plan to be moving to California in about 1-2 years. I don't know if I want to pack up my equipment and move it with me, or just sell it all outright and start again where I move.

I'd also have to think that if I take my equipment with me, I might still be able to sell off the location.

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