Increasing The Market Value Of Your Vending Machine Business

Any business, including vending, is usually valued for the cash flow and predictability or stability of that cash flow. After all, if the cash flow is predictable, the assets and the franchise responsible for its creation will hold considerable value.

As a Planet Antares vending operator, this may not effect you much. However, in case of considering an exit strategy or buying a business to enhance it and sell it, you may become interested in increasing the value of your business.

While considering the market value of your Planet Antares vending business, you first have to think about the new and existing locations, not just for their past performance but also for any trends that may have an impact on their future performance. For example, the future value of your vending locations depends on the risk involved. Low growth locations have more tisk.

Also, you will have to quantify the average life span of your vending machines and its replacement value. Any prospective buyer would be interested in these details. Thus, it becomes important to purchase quality equipment like those that are provided by Planet Antares Corporation. Buyers will also ask about your customer retention rate and growth rate in recent years. These figures add or deduct from the stability of your cash flow stream.

Moreover, you need to find ways to enhance the predictability or stability of your cash flow by “locking in” your accounts. A buyer will immidiately place a higher value on a vending route backed up by one or multiple year contracts. On the other hand, you can have some form of exclusivity to offer the customer like an unusual brand or price on a specific product.

Remember that if you are able to maintain a stable or growing cash flow in your Planet Antares vending business and have good locations and customer retention rates, you will have a successful, comfortable vending business. Such a business will definitely be a valuable commodity in today;s investment environment.