How to Increase your Market Value

A business is mostly valued for the cash flow and the predictability or stability of that cash flow. Because if the cash flow is predictable, the assets and the franchise that create the cash flow will hold their value.

If you are operating your Antares routes to make a living, it may not affect you much. But if an exit strategy is being considered, or if you bought the business to enhance it and sell it, then you might be interested in increasing the value of your business.

Market value

When you would want to consider the market value of your Antares vending business, you must first consider new and existing locations, not only for their past performance, but in light of any trends that might affect their future performance. Imagine the future value of your vending location as if you were a prospective property owner. Buyers will look for locations as one component of risk. Low growth locations would be a risk. The next step would be for you to quantify the average life span of your equipment and its replacement value. This is something that a prospective buyer will want to know. This is the reason why it is important to purchase quality equipment like those that are provided by Antares Corporation. Thirdly, any buyer would definitely ask you about your customer retention rate and recent growth rates. These are numbers that you should be well aware of. Proof of high retention rate or growth rates add stability to your cash flow stream.

How secure is what you have to offer

Lastly, you would need to find ways to increase the predictability or stability of your cash flow by “locking in” your accounts. A prospective buyer would immediately place a greater value on a portfolio of vending locations if they were backed up by one year or multi year contracts. If contracts don’t work for you, then you can have some form of exclusivity to offer the customer, such as an unusual brand or an unusual price on a particular product.

Remember that if you can boast of a stable or growing cash flow in your Antares vending business, and have the kind of locations and retention rates that allow for comfortable projections of the same, then it all means that you are the owner of a valuable commodity in today’s investment environment.