Below is a listing for a vending business for sale, it seems over priced per the revenue, it seems as though the business might be worth around $175,000 and has some lower revenue routes, do you agree?
Description
This vending business has been active for 13 years during which time it has serviced long-established accounts. To date it has almost 100 soda, snack, ice cream, frozen food or coffee machines in service in high traffic locations. It enjoys repeat sales and tremendous customer satisfaction. With over 35 locations it is positioned for a new owner to take it to the next level. The owner/founder is selling due to health issues. Included with the business is a 2008 truck.
FinancialsAsking Price: $225,000
Revenue: $191,037
Cash Flow: $73,519
Downpayment: $0
Monthly Payroll: $0
FF&E Asking Price: N/A (Included in Asking Price)
Inventory Asking Price: $12,000
Financing Available? No
1 reply to this topic
#2
miked
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Posted 20 September 2010 - 08:33 PM
A good rule of thumb is 50% of sales plus other assets so puts it around 115-120K.
I also had a formal appraisal done on a route that I was interested in due to a difference of opinion in value. The appraisal firm used a total of 28 comps over three years and came back at 74% of annual cashflow. Which gets you around 140K.
IMO 225K is WAY too much unless it's all new equipment with all the new technologies deployed (debit/credit, remote monitoring)even then its a number that's hard to justify.
I also had a formal appraisal done on a route that I was interested in due to a difference of opinion in value. The appraisal firm used a total of 28 comps over three years and came back at 74% of annual cashflow. Which gets you around 140K.
IMO 225K is WAY too much unless it's all new equipment with all the new technologies deployed (debit/credit, remote monitoring)even then its a number that's hard to justify.
