Mandrake.ATM
No passive investors
Can I invest in your ATMs?
No, we don't operate passive investment schemes. We have an established business model that has proven very successful for us. Our business model does not require outside investment. Our merchants are the investors in their own ATMs. Read our ATM Buying Guide by clicking on the link.
As we said before, the only feasible option is for you can buy ATMs from us, provided you have located appropriate sites for your own ATMs. There are a lot of worthwhile opportunities for a driven, serious and financially resourced person who is willing to invest money, effort and time in finding lucrative locations for their ATMs. We will do the rest.
If you're feeling excited about exploring these last three options and would like some expert guidance, don't hesitate to reach out to us at 1800 672 867 or email Mark Walbank, the founder, owner and business development director of Mandrake.ATM at mark@mandrakeatm.online. Mark is ready to assist you by providing a complimentary consultation and, possibly, financial documents to navigate your purchase decision journey in the complex landscape of the private ATM business in Australia. You will need to provide proof of funds to continue the conversation about acquiring a well-established ATM deployer. Due diligence goes both ways. We're here to help you make informed choices and and you need to help us have informed choices about you, so we can jointly embark on a rewarding journey. With our expert guidance, you can feel reassured that you're making the best possible investment in the ATM industry. You're not alone in this journey; we're here to support you every step of the way.
Info Regarding ATM Machine Businesses for Sale and People Looking for Passive Investment in ATMs
4. Don't bother with general business brokers
Never employ a generic business broker to help you on the journey of acquiring an established ATM deployer. They are required to hold real estate licenses to sell businesses. ATM deployment businesses are quite sophisticated businesses, with many of them also having significant intellectual property. General business brokers are simply not qualified to properly value ATM deployment businesses.
In our experience, they are entirely useless when it comes to properly valuing and selling Australian ATM businesses. We are not aware of a single instance where a general business broker has sold an Australian ATM business. Brokers with industry experience are best positioned to assist you with accurate analysis and valuation. All they are interested in is collecting their little listing fee and low-valuing these sophisticated businesses in the same way as straightforward businesses (like gyms, laundromats, and car wash places), which have no guaranteed income. They want to make easy dollars by giving you valuations that have no justification in the history of the Australian ATM industry. In contrast, ATM deployers have had customers in contractual arrangements for many years. If you are a serious person and are seriously considering investing in an ATM business, talk to expert brokers with many years of experience in the private ATM deployment industry. You will be very grateful for establishing the right business network and actually knowing the real value of your business down the road when you might be considering selling your ATM business.
3. Acquire a successful and established ATM company
The third option involves acquiring an established ATM company. This route can offer a treasure trove of assets and operational capabilities. If you pursue this route, be prepared to invest significantly—typically between four and ten times the company's annual adjusted EBITDA or also more rarely known as the capitalisation of future maintainable profits, which is a gold-standard valuation method used in most Australian industries. This method takes into account the company's earnings before interest, taxes, inescapable costs of doing business, depreciation, and amortisation, providing a more accurate picture of its financial health. We recommend reading the latest edition of Wayne Lonergan's book, The Valuation of Businesses, Shares and Other Equity, which is the Australian go-to guide for valuing various types of businesses. As Simon McKeon is quoted as saying in the mentioned Lonergan's book (p.29), "Valuation is essentially a science, but one which is complex and which requires sound judgment to weigh up the relative importance of a substantial number of inputs and variables."
While some Australian ATM businesses have been sold using the Adjusted EBITDA valuation method, other ATM companies have sold their ATMs using new valuation methods, such as the 'value per ATM method'. This method involves valuing each ATM individually based on factors such as its location, foot traffic, and transaction volume, which are not mentioned in Lonergan's book.
For example, on the 1st of September 2014, DC Payments acquired Eze ATM, which had a fleet of 1,325 ATMs, for $13.4 million. On the 2nd of October 2015, StarGroup acquired CashPlus for $6.5 million. CashPlus had a fleet of 109 ATMs. On the 3rd of March 2016, StarGroup acquired Cash My ATM for $4.5 million. Cash My ATM had a fleet of 95 ATMs. On the 5th of October, 2016, DC Payments acquired FirstData's ATM fleet of 3,530 ATMs for $55 million. On the 6th of July 2017, StarGroup acquired Fast Cash's fleet of 134 ATMs for $4.2 million.
To make the best investment decision, conducting thorough due diligence is absolutely vital to ensure you're assessing the company's current performance and its future potential. Remember, due diligence is not just a step; it's a mindset that should guide your entire investment journey. By taking the time to research and understand the potential risks and rewards thoroughly, you can make a more informed and responsible investment decision. This process puts you in control and ensures you're making a decision that aligns with your investment goals and values.
2. Start your own ATM business by placing, buying and connecting your own ATMs
Another promising approach is to start your own hobby or more-than-a-hobby ATM business, a path chosen by many successful small to medium-sized ATM operators. This option involves buying and placing your own ATMs, then connecting them to the Australian electronic financial system through the gateway services provided by a reliable ATM deployer with 21 years of experience in the ATM industry, such as Mandrake.ATM. These 'gateway services' act as a bridge between your ATMs and the electronic financial system, ensuring seamless transactions. This method empowers you with greater autonomy and control over your investment. Mandrake.ATM enhances this experience with its innovative app, Boobsta®️, which simplifies ATM business management, automates ATM business workflows and boosts operational efficiency. This flexibility can pave the way for a fulfilling work-life balance, as you have direct oversight of your assets offered by Mandrake.ATM and Boobsta®️, without the restrictions that often accompany franchise agreements. Read the next section about how to acquire a successful and established ATM company that offers more than just profitable ATM locations and a guaranteed income for five years.
1. ATM Franchising
One popular avenue is purchasing an ATM franchise. While this option offers the appeal of established branding, it's essential to be aware that not all franchise operators have a stellar reputation. Many franchises may demand significant upfront investments—sometimes exceeding $75,000—while offering limited support and chances for sustainable success. Therefore, if you choose this route, it's essential to do your homework and remain vigilant to avoid the pitfalls of a failing franchise. Remember, the allure of a well-known brand should not overshadow the potential challenges that come with it.
Introduction
When considering the exciting opportunity of buying an ATM business in Australia, there are a few distinct pathways you can explore, each with unique advantages and potential challenges. The private ATM deployment industry has undergone massive changes in the last decade. The barrier to entry into the sector has increased dramatically, making it very difficult for new entrants to enter the market. Clearance and settlement "houses", or companies providing transaction processing, are not interested in letting new entrants into the market.