Vending Business Resources

What to Look For

When evaluating a vending business acquisition, focus on:

• • Location quality - High-traffic locations = consistent revenue
• • Contract terms - Longer lease agreements reduce risk
• • Machine condition - Age and maintenance history matter
• • Route density - Tighter routes = better margins and efficiency
• • Product mix - Diversified offerings (snacks, drinks, combo) perform better
• • Commission structure - Lower location commissions = higher profits

Typical Valuation Multiples

Vending machine businesses typically sell for:

• • 2.0-3.0x annual net cash flow for smaller routes (under 20 machines)
• • 2.5-3.5x annual net cash flow for mid-size portfolios (20-50 machines)
• • 3.0-4.0x annual net cash flow for larger established routes (50+ machines)
• • Premium multiples for specialty vending (healthy, micro-markets, specialty items)

*Multiples vary based on location quality, machine condition, contract length, and growth potential

Key Metrics to Analyze

Understand these critical numbers:

• • Revenue per machine per month - Industry average: $250-500
• • Net profit margin - Should be 25-35% after all expenses
• • Commission percentage - Lower is better (aim for under 20%)
• • Service frequency - Fewer visits = better efficiency
• • Product cost ratio - Should be around 30-35% of gross sales

Financing Your Purchase

Most buyers finance 70-90% of the purchase price through:

• • SBA 7(a) loans - Up to 90% LTV, 10-year terms
• • Seller financing - Often 10-20% of purchase price
• • Equipment financing - For machines and vehicles
• • Business lines of credit - For inventory and working capital

Need financing? We work with SBA lenders who specialize in vending business acquisitions. Contact us for an intro.

Due Diligence Checklist

Before you buy, verify:

• • Location contracts (terms, renewal history, commission rates)
• • Revenue reports by machine and location (12-24 months)
• • Machine inventory (age, condition, manufacturer, warranty status)
• • Route map and service schedule
• • Vendor agreements and pricing
• • Insurance policies and claims history
• • Vehicle condition and maintenance records
• • Outstanding liabilities or legal issues
• • Location concentration risk (top 3 locations = what % of revenue?)

Preparing Your Business for Sale

Maximize your sale price by:

• • Document everything - Revenue reports, location contracts, machine inventory
• • Extend contracts - Renew location agreements before selling
• • Service machines - Update equipment, fix issues, clean thoroughly
• • Optimize routes - Tighter routes = more attractive to buyers
• • Show growth potential - Identify underperforming locations with upside
• • Clean financials - 2-3 years of profit/loss statements by location

When to Sell

The best time to sell is when:

• • Revenue is stable or growing (shows strength)
• • All locations have active contracts (reduces buyer risk)
• • Machines are in good working condition (less deferred maintenance)
• • You have a compelling story about growth opportunities
• • Market conditions are favorable (low interest rates help buyers finance)

Want to sell your vending business? Learn more →

Industry Trends

• • Cashless payment adoption - Card readers and mobile payments are becoming standard
• • Healthier options demand - Premium for machines offering healthy snacks and drinks
• • Micro-markets emerging - Unattended retail spaces in office buildings
• • Remote monitoring - Smart machines with telemetry reduce service costs
• • Consolidation wave - Larger operators acquiring smaller routes

What Buyers Want Most

• • Routes with 20-100 machines (sweet spot for owner-operators)
• • High-traffic locations with long-term contracts
• • Newer machines with cashless payment capability
• • Low commission rates to locations (under 20%)
• • Seller willing to provide training and transition support
• • Geographically concentrated routes (lower fuel/time costs)

Common Vending Types

• • Snack machines - Chips, candy, crackers (lowest maintenance)
• • Beverage machines - Sodas, water, sports drinks (higher revenue per machine)
• • Combo machines - Snacks + drinks (most popular, best revenue)
• • Specialty machines - Ice cream, hot food, healthy options (premium pricing)
• • Micro-markets - Open shelving with self-checkout (highest revenue per location)