ATM Portfolio Valuations

As a person/company is growing their atm portfolio, you should always keep in mind of your exist strategy. Never forget that you can unlock amazing value by properly structuring your route and contacts. Today, if properly structured, you can get up to 18 months of monthly profits on a sale.

Some tips to think of:

Vault Cash: Many times, companies do not use armor car. While this cuts down on costs, it makes the value of your location less. For instance, by not having your atm setup for armor car, you are forcing that new owner to retrofit the atm with a new lock (ie cencon) or needing to replace the atm machine entirely.  This will greatly effect the valuation.

Contracts: This is the gold part. To unlock the most value, you need a solid contract with multiple years left on it. A good rule  of thumb is to have at least 3 years left on the contact, ideally 5 years. With more years left on the contract, you run a greater chance of getting a higher buyout price. Additionally, you can earn a even higher value if you can get the existing atm location to sign a new contract with the acquisition.

History: The longer the transaction history, the greater the value. If you have less than 6 months of transactional data, you will have a very hard time to sell it. Ideally, you want a solid year of transactions to show the seasonaility of the locations to the new owner.

ATM Hardware: If you are using an older model atm, or there seems to be issues with the atm, you might want to upate the parts. Or better yet, replace the atm entirely. When a new owner is looking to purchase, they look at ways to lower the price by additional work that they need to do.

So How Much Will I Get?
Ah, the question all atm owners want answers too. If you have

  1. Solid Contract – 5 years remaining
  2. ATM Machine is Armor Car Ready
  3. At least one year of transactional data

I can get you 15-18months of gross profits.
Example, you average 500transactions a month, $2 surcharge, with .50 per transaction going to the owner, that leaves you with a gross profit of $750. Assume .30 on interchange, brings us to $900 gross profit. This one location would get between 13k-16k

If we take that same example, but you it doesnt have armor car set up and/or has a small dispenser, the valuation could drop to 12-15 months.

Those are generally not the deal breakers. The deal breakers generally revert back to the contract. This will make or break the valuations of your portfolio. Many atm companies feel their locations are worth more. Thing is, its only worth what someone is willing to pay for it. By trying to cater to the buyer AS MUCH AS POSSIBLE, you run an excellant chance of coming through with a proper sale!

If you have portfolios you are looking to sell, or would like some additional information on setting meetings up with buyers (all under an NDA), feel free to contact me : Contact the author: ATM Business Author

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ATM Business is Beyond the Hyper Growth Phase

The atm business is in a transition. What initially become a hyper-growth phase, we are now seeing massive consolidation within the industry. Portfolios are being acquried from public and private equity. The one major reason for this is the decrease in net profits per machine.

During the growth phases, machines were installed everywhere. Many companies tried using armor car and bank cash within the atm machines. When these locations failed to become profitable, these atms could not be moved into more profitable locations. As a result ,the easier choice is to sell the good and bad within a porfolio into stronger hands.

As a result, companies that have a strong balance sheet with cash reserves, can obtain some great porftolios out there in the marketplace.

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