Vending companies are particularly popular all over the world. In the United States, for example, they are responsible for distribution of vending machines in subway stations, medical offices, airports, train stations, coffee shops etc.
Usually, there are no physical stores in the vending industry. There are companies throughout the country that coordinate everything and contacts distributors. It’s not hard to say that a business like this is very difficult to run.
Vending companies offer not only machines with food and beverages, but also books, candies, chocolates, magazines, coffees, and so on. It’s also responsible for offering innovative equipments, wellness solutions and merchandising. Not to mention money management.
Here you’ll find some tips in order to learn how to sell it for maximum value. Take a look at the next topics.
What is your Vending business worth?
If you want to sell your vending company, the very first thing you have to do is develop a complete and detailed finance profile, in order to provide potential buyers with all the information they need to make a deal.
This finance profile includes some important data, such as sales numbers, profits per year, growth trends, etc.
Try to compile every file you can find, but you don’t have to gather every single document since you’ve opened the company. The last three to five years of data will be enough to satisfy potential buyers interests.
Then, prepare a second report regarding all the places where your company has put a vending machine, with all the sale numbers and other statistics you find important.
What makes a Vending business worth more?
An innovative machinery and up to date equipments are some very good differentials when it comes to selling a vending company. If you have invested in your services efficiency and developed new solutions, like programs created to include healthful products, there’s a great chance you make the deal you expect.
But that’s not all. There are other aspects that must be considered. Take a look:
- Predictable key drivers of new sales
- Stable or growing traffic from diversified sources
- Established suppliers of inventory with backup suppliers in place
- Traffic stats
- High percentage of repeat visitors and repeat sales
- Clean legal history
- Brand with trademark, copyright or legal concerns
- Documented systems and processes
- Growth potential
What does the average Vending business sell for?
If you’ve decided to sell your vending company, you may get almost $200k for it. At least that is the average sales price, calculated over the past 10 years.
In the same period, 496 vending companies were sold and the total transaction value was almost $100 million. So it’s possible to assume that if you want to make a deal today, it’s very likely it will be a very good one.
When it comes to profit, you have to pay attention to the average multiple rate: 2,39. It means that the average sales price (like your asking price) is more than two times higher than total gross income.
What is the most frequent deal size?
The most frequent deal size is $100.000, which means that this is the most likely price you’ll get if you sell your vending company today.
As you can see in the chart, most of the sales in the last 10 years were less than $500k. More than that is not that common, but possible.
In 2015, most of the deals made were less than $250k. But in 2014, it was the second higher deal size, the first one was $250-500k.
Is the Vending market getting bigger?
2015 was a particularly good year for the vending market, as it was better than it’s previous years — only 2009 was better.
It’s likely 2016 is even better for vending companies. For now it’s still difficult to estimate what this market is worth, but judging by 2015 numbers it may be one of the best years ever.
Anyway, that’s a very good moment for selling your business.
Are bigger businesses worth more?
Not in this case. Usually the higher the deal size the higher the multiple. But when it comes to vending companies, it doesn’t work in that way. Take a look at 2015 numbers for example:
If a vending company owner has sold his business for less than $250k, he got a multiple of 1,09, as expected. But if he has sold the company for $250-500k he got more profit than he would get if he’ve sold it for more $500k and less than $2 million.
What states have the most business deals?
Are you wondering where the most deals were made throughout the country, or if your state has a hot market to sell fast? As you can see if you are located in California you may get a lot more offers than if you are in Iowa or Connecticut.
But states like Florida, Illinois, Georgia and New York are not that bad either.
Why would you sell in the first place?
The reason to sell always varies from each person. Maybe you are looking for new challenges, businesses and opportunities, or you just want to enjoy your family and retire. Although it can seem tempting to get your hard worked cash, make sure that you are clear on the motives so you don’t regret afterwards.
How long will it take to sell your business?
If you have read all the necessary steps to understand your valuation, and think you have focused on all the topics that make your company worth more, it is maybe time to start the process. Selling your business is a long-term process, and doesn’t happen overnight. Usually companies sell in 12 months, but you can also see deals getting closed in 6 to 9 months depending on the opportunity.
What is the process of selling your business?
This step by step process will help you get less confused when you make sure you are ready and confident to let go of your business, and perform a nice and positive sell. Many entrepreneurs forget about a step, or just don’t have the right guidance to know all the stages necessary and get lost through the process. Don’t forget to go through all of these, and if you have any questions, comment at the end of the article or contact us for more help.
Who will buy your business?
If you are wondering about the buyers that can be interested in your Vending Company, don’t worry, there are many options and possibilities. From First Time entrepreneurs, to businessmen interested in new opportunities, the chances are that in the vending industry it may likely be a person who already had a store in the field.
A vending company is a very difficult business to run, and therefore is a very difficult business to sell as well, as there are a lot of important information that must be gathered in order to set a fair and reasonable asking price.
However, today is a very good moment if you are decided to sell your vending company. So if you want to start accelerating your buyout process, fill out our free valuation form and get your business valued today! Leave your comments on any doubts or feedback, we are glad to hear your thoughts!