What should I ask about a vending route’s machine ages and breakdown history?
Ask for a list of every machine with its make, model and purchase date, then ask for the repair record behind each one. Machines that fail often, or use parts that are hard to find, tell you more than the age alone does.
Start with the list. A seller should be able to name each machine, say when it arrived on the route and say where it came from, new or used. Compare that list with what you see on site. A machine missing from the list, or listed but absent, is a question to raise early.
Then move to the repair record. Ask which machines get the most service calls, what failed, who fixed it and what it cost. Invoices from a repair technician are stronger evidence than a seller’s memory. If the seller does the repairs personally, ask how many hours that takes each week, because you will either take that work on or pay someone to do it.
Ask about parts and support. Some older models can no longer be repaired because the maker stopped supplying parts. Ask whether any machine is already past that point, and which ones the seller would replace first. Ask also about card readers and coin mechanisms, which tend to wear faster than the cabinet. Finally, ask your accountant how the machines have been written down in the books, and whether replacement cost has been left out of the profit picture you were shown.
Key takeaways
- Match the machine list to what is physically on the route.
- Ask for repair invoices, not recollections.
- Find out which units can no longer get parts.
- Ask what the seller would replace first and what that replacement would cost today.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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