Thinking of selling our coffee vending businessas a complete package. : LUSENET : Coffee Related Buy/Sell/Trade : One Thread

Help - please.

We have 10 Saeco 7 plus machines in thriving locations in the Vancouver area. We are considering selling the business. (with locations, machines and work vehicle.) What do you think would be a fair asking price? Our locations are excellent.

Thanks for your input.

-- Maggie Wing (, May 07, 2004


Hello Maggie,

The standard pricing for established business is 3 times your yearly gross average if that business is over 5 years old, and profitable.

So if you gross $50,000 a year for the last 5 or more years, you can sell your business for about $150,000.00.

Good Luck!

-- David (, August 31, 2004.

Hello Maggie - I may be interested in purchasing your coffee business. My name is Brian Hickey, I am American and have a close American friend who is residing in Vacouver and has been for several years. We are interested in the mobile coffee business especially in B.C. The amount of focus on your mobile coffee business would play a factor on our interest, however with good locations and sustained profits you should have no trouble obtaining a reasonable offer in no time. I encourage you to commit at least a moderate amount of time in researching the factors which would drive your asking price. Although the general primise of what your earlier respondent, David, was not necessarily erroneous, there are several other factors that you should consider before even trying to "ballpark" what your company is worth. First off, generally your last 5-years of revenues is not looked at as an average as it is current volume and perceived future volumes that drive the price with profitable companies. It sounds as if you are in a position where one could cast little doubt of the Company's potential of continuing to operate at the same level of profitability in the upcoming years. It is my understanding that a factor of 2 is more common than 3 ever since the internet bubble burst. Good News is that you use only your last 12-months of sales when. Also, if it turns out that product of 10 multiplied by your net profit realized of the most recent and accountable 12-months is greater than the product of 2 multiplied by gross revenue us use the former (you use whatever is higher!!!) plus don't forget to add the market value of the equipment, vehicle, inventory, and miscellaneous assets.

It may not be a bad idea to have a professional give you a second opinion before committing to a price. GOOD LUCK!!!!! I'm a CPA. Maybe you could give me some tips on coffee. :)


-- Brian L. Hickey (, October 30, 2004.

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