Jump to content

Purchasing a route


minivend

Recommended Posts

I have an opportunity to purchase a route that consists of 45 locations. I looked at the owners tax returns (last three years) and he is averaging $150,000 in revenue. These are all rack locations. Some are under contract and some aren't. His equipment is 80% Beaver Machine and all the equipment is keyed alike. He is asking $115,000. The commission structure is 20%. He will sign a 10 year non compete. What do you guys think of the price?

Link to comment
Share on other sites

I would ask to see the route cards that shows each rack averaged 278 or so a month. I know there are good rack locations out there but this sounds to good to be true. I have a feeling there is other business mixed in on those tax returns. Im like dperry I wish I was that bored!

Link to comment
Share on other sites

I reviewed his income statement and balance sheet..Boy, this guy has his accounting in order! A couple of the locations are duds and some are heavy hitters..The price also included inventory..approximately $5000. Broke out by Candy, Capsule, Stickers/Tattoos,Superballs, and Gumballs. Equipment before depreciation was close to $45k. Which makes sense because its Beaver Machine. Getting that low commission is possible. I've done it by having pictures of my equipment to show the decision maker and by giving him references of people (locations) who claim they were getting 40% before and now they are getting 25% (of the TRUE revenue) and they are making more money with me. Good ethical operators are scarce in this business. Always stay honest and you will see the payoff.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...