What is the best way to check who owns the ATMs on a route I want to buy?

Start with a schedule that has one line per machine: serial number, location, who bought it, whether it is financed or leased and whether any lender holds a claim on it. Ask for purchase invoices and any finance or lease contracts. Inspect a sample of machines to confirm that the serial numbers match the schedule.

Next, look at the location agreements. Machines often sit in someone else’s premises, such as a shop or a restaurant, under an agreement that sets out who may remove the machine and what happens when the premises change hands. Ask whether each agreement allows a transfer to a buyer and who at the site needs to agree to that. Speak to a few site hosts directly if the owner permits.

Also ask about the other parties in the chain, including the company that processes transactions and anyone who supplies cash, since their contracts may not move with the machines. Your lawyer can search for liens and review the agreements, and your accountant can tell you how the machines are recorded in the books. Ask also which party would hold the cash if a machine were removed.

Key takeaways

• Get a machine-by-machine schedule with serial numbers and owners.
• Match invoices and finance papers to a sample of machines on site.
• Check whether each location agreement allows a transfer to a buyer.
• Ask your lawyer to look for claims against the machines.