Cornerstone Vending
Solutions LLC
Acquisition Analysis — Ballwin, MO (St. Louis Metro)
Micro-scale vending operation with healthy margins but minimal revenue, zero marketing presence, and significant owner-dependency. Upside exists but requires active growth investment.
Company Snapshot
Joshua DSpain's primary business is his St. Louis franchise of "The Brothers That Just Do Gutters," which he built into one of the franchise's largest locations. Cornerstone Vending appears to be a secondary, lower-priority venture that "wet his whistle" for full-time entrepreneurship. This has direct implications for the operational commitment and growth trajectory of the business.
Profit & Loss — FY 2025
| Line Item | Amount | % of Revenue | Assessment |
|---|---|---|---|
| Total Revenue | $58,352.22 | 100.0% | Very low scale |
| Cost of Goods Sold | $26,903.69 | 46.1% | Within range |
| Gross Profit | $31,448.53 | 53.9% | Strong for vending |
| Contract Labor | $9,305.68 | 15.9% | High for this scale |
| Interest Expense | $9,550.50 | 16.4% | Very high — SBA debt |
| Taxes & Licenses | $3,289.98 | 5.6% | Standard |
| Insurance | $872.00 | 1.5% | Low |
| Other Operating Expenses | $1,513.05 | 2.6% | Minimal |
| Net Income | $7,013.32 | 12.0% | Thin at this revenue |
At $9,550.50 (16.4% of revenue), interest payments consume more than the business's net income. This is driven by an SBA loan of $92,579.66. The debt service is the single largest drag on profitability. A buyer would need to evaluate whether this debt transfers with the acquisition or can be restructured.
Balance Sheet — as of Dec 31, 2025
| Category | Item | Amount |
|---|---|---|
| Assets | Cash & Cash Equivalents | $4,310.46 |
| Equipment (Gross) | $164,995.00 | |
| Less: Accumulated Depreciation | ($23,570.72) | |
| Net Equipment | $141,424.28 | |
| Total Assets | $145,734.74 | |
| Liabilities | SBA Loan | $92,579.66 |
| Accrued Payables | ($120.03) | |
| Total Liabilities | $92,459.63 | |
| Equity | Member Contribution | $61,632.00 |
| Owner's Pay / Draw | $2,920.00 | |
| Retained Earnings (P&L) | $7,013.32 | |
| Total Equity | $53,275.11 |
The business is essentially a pool of equipment ($165K in machines) financed by an SBA loan ($92.6K). Cash position is dangerously thin at $4,310 — barely one month of operating expenses. Owner's pay was only $2,920 for the entire year, confirming this is not the owner's primary income source.
Key Performance Indicators
SDE Calculation
| Component | Amount | Notes |
|---|---|---|
| Net Income | $7,013.32 | Bottom-line profit |
| Owner's Compensation | $2,920.00 | Added back (below market) |
| Interest Expense | $9,550.50 | Added back (buyer may restructure debt) |
| Seller's Discretionary Earnings | $19,483.82 | Basis for valuation multiple |
Vending Industry Benchmarks
Comparison against published vending industry standards from IBISWorld, BizBuySell, and industry trade groups. Cornerstone's positioning is marked against each range.
| Metric | Industry Range | Cornerstone | Position |
|---|---|---|---|
| Gross Margin | 40% – 60% | 53.9% | Above median |
| Net Margin | 15% – 30% | 12.0% | Below range |
| COGS % | 40% – 55% | 46.1% | Well-managed |
| Labor as % Revenue | 10% – 20% | 15.9% | Mid-high for scale |
| SDE Multiple (Valuation) | 1.5x – 2.5x | Applied below | |
| Revenue Multiple | 0.3x – 1.15x | Applied below | |
| EBITDA Multiple | 3x – 5x | Applied below | |
Cornerstone's gross margin (53.9%) is above the industry median, suggesting good product mix and pricing. COGS at 46.1% is well-managed. The core unit economics of each vending machine are sound — the problem is scale and debt, not the vending model itself.
Valuation Range
Estimated Fair Value Range
The $92,580 SBA loan is the critical variable. If the buyer assumes the debt, the effective purchase price increases by that amount. If the seller retires the debt from proceeds, the asking price must be higher. Clarification on debt treatment is essential before any LOI.
Online Presence Scorecard
Comprehensive audit of Cornerstone Vending's digital footprint across all major platforms. Overall Score: 0.3 / 10.
Website Analysis
The domain cornerstonevendingstl.com exists but is a non-functional landing page. The homepage contains only a JavaScript redirect to a "/lander" page, which itself contains only a JavaScript variable. There is no visible business content, no contact information, no service descriptions, no images, and no SEO-indexable text. Title tag reads "Home - Joshua & Sharon DSpain" — not business-branded.
Social & Review Platforms
The company has zero presence on Facebook, Instagram, LinkedIn (company page), Twitter/X, TikTok, Yelp, or BBB. The only digital footprint is an Alignable profile with 2 recommendations from local business owners (both from Homestead Financial Mortgage).
SEO Assessment
Effectively zero organic traffic. The site has no indexable text content (JavaScript-rendered only), no blog, no service pages, no location pages. No keyword rankings detected. No meaningful backlink profile. Estimated Domain Authority: 0–5 range.
This is not a business that has tried marketing and failed — it's a business that has never attempted marketing at all. This is consistent with it being a side business. The silver lining: there's nowhere to go but up. Every standard marketing action (Google Business Profile, basic website, social accounts) would be net-new growth.
St. Louis Vending Market — Competitive Landscape
The St. Louis metro area has 12-15+ active vending operators ranging from local owner-operators to national chains. Yellow Pages lists 30+ companies in the category.
| Company | Est. | Type | Notable |
|---|---|---|---|
| Cardinal Vending | 1987 | Local | 37+ years. Major established player. Full-line vending. |
| Dynamic Vending (Canteen/Compass) | ~1994 | National | Canteen division — largest U.S. vending operator. 225+ locations in 48 states. |
| American Food & Vending | 1940 | Regional | 3rd generation family-owned. 85+ years. NY, Phoenix, STL, KC, Indy. |
| Metro Vending STL | ~2004 | Local | 20+ years. Family-owned. I-Vend guarantee technology. |
| Arch Vending | N/A | Local | Family-owned. Niche/smaller locations. Metro STL + IL. |
| APEX Restaurant & Market Solutions | N/A | Regional | Columbia MO, KC, STL. 100+ combined years in industry. |
| Fresh Markets STL | N/A | Local | Micro-markets, office coffee, modern vending. |
| Hammerhead Vending | 2024 | Local | Newest entrant — acquired Griesedieck Vending (35-year operator). |
| St. Louis Vending | ~2015 | Local | Owner: David Garcia. 10+ years operating. |
| Binta Vending | N/A | Local | Health-conscious focus. Employee wellness emphasis. |
Cornerstone is the smallest and least-visible operator in a crowded market. Every competitor — including other small operators like Hayes Vending and Binta Vending — has more online presence. The market includes players with 37-85+ years of history. Competing on incumbency or scale is not viable; the healthy/organic niche and modern cashless technology are the only realistic differentiators.
Vending Industry Trends (2025–2026)
Key Trends
| Trend | Data Point | Relevance to Cornerstone |
|---|---|---|
| Cashless Payments | 71% of vending transactions cashless (2024); 77% of those contactless | Already equipped — Nayax cashless on all machines |
| Healthy Vending | Major differentiator in corporate/office settings | Core brand identity — Naturals2Go = healthy focus |
| Micro-Markets | 23% higher avg transaction value vs. traditional vending | Not currently offering — potential expansion |
| Smart/IoT Machines | 14.3M connected units by 2030 (from 8.1M in 2025) | Naturals2Go includes remote monitoring |
| Industry Consolidation | Operator count declining 2.2% annually | Small operators being squeezed |
SWOT Analysis
Strengths
- Strong gross margin (53.9%) — above industry median
- Modern Naturals2Go machines with cashless payment (Apple/Samsung Pay)
- Healthy/organic niche aligns with industry growth trends
- Low operating expenses outside of debt service
- $165K in hard assets (equipment with resale value)
- Remote inventory monitoring reduces labor needs
Weaknesses
- Extremely low revenue ($58K) — barely a full-time business
- Heavy SBA debt ($92.6K) with interest consuming 16.4% of revenue
- Cash position critically thin ($4,310)
- Zero marketing presence across all platforms
- Side business for owner — limited growth commitment
- Owner's pay ($2,920/yr) shows minimal investment in growth
- $165K in equipment producing only $58K revenue — underutilized
Opportunities
- Every marketing channel is untapped — massive low-hanging fruit
- Google Business Profile alone could drive inbound leads (free)
- Micro-market expansion (23% higher transaction values)
- Corporate wellness programs actively seeking healthy vending options
- Cashless-first positioning appeals to modern workplaces
- Dedicated owner could dramatically improve asset utilization
Threats
- National operators (Canteen/Compass) dominate large accounts
- Established local competitors with decades of relationships
- Industry operator count declining 2.2% annually — consolidation pressure
- SBA loan terms may complicate ownership transfer
- Location agreements (if any) may not transfer to a buyer
- Inflation on product costs could compress margins
Risk Factors & Due Diligence Items
The $92,580 SBA loan is the single most important due diligence item. SBA loans typically require lender approval for business transfers. The buyer may need to assume the loan, negotiate payoff from sale proceeds, or refinance. This will heavily influence the effective acquisition cost.
Vending revenue depends entirely on machine placement locations. Are there formal contracts with location hosts? Are they transferable? What are the terms and expiration dates? If placements are informal handshake deals, they could evaporate with a change in ownership.
The balance sheet shows $165K in equipment with $23.6K in accumulated depreciation. What is the actual condition and remaining useful life of each machine? Naturals2Go machines typically have a 10-15 year lifespan. Understanding the vintage and maintenance history of each unit is critical.
With only $58K in annual revenue, each machine location represents a significant percentage of total income. Loss of even one high-performing location could materially impact the business. Due diligence should include per-machine revenue breakdown.
The business currently operates as a side venture with minimal owner engagement. A buyer intending to operate full-time would need to rebuild operational processes, vendor relationships, and location host relationships essentially from scratch.
Cornerstone operates as a Naturals2Go licensee. Confirm: Is the license transferable? Are there ongoing fees or restrictions? Can a buyer continue purchasing inventory through their supply chain? This relationship is foundational to the business model.
90-Day Growth Playbook
If acquired, the following actions represent the highest-ROI marketing and operational improvements, organized by priority and timeline.
Claim & Optimize Google Business Profile
- Create Google Business Profile for "Cornerstone Vending Solutions"
- Set service area to St. Louis metro (50-mile radius)
- Upload photos of machines, healthy product selection, machine installations
- Add services: vending machine installation, healthy vending, cashless vending
- Ask existing location hosts for Google reviews
Build a Real Website
- Replace the blank landing page with a proper 5-page site
- Pages: Home, Services, About, Contact, Request a Machine
- Optimize for "vending machines St. Louis" and "healthy vending Missouri"
- Add a contact form and phone number prominently
- Include photos, testimonials from location hosts, and service area map
Establish Social Media & Directory Listings
- Create Facebook Business page and LinkedIn Company page
- List on Yelp, BBB, and local business directories
- Post machine installation photos, product highlights, health tips
- Join St. Louis business networking groups on Facebook and LinkedIn
Outbound Sales — Location Acquisition
- Target: office buildings, gyms, medical offices, auto dealerships, hotels
- Pitch: "Free vending machine installation, no cost to you, healthy options your employees/customers will love"
- Goal: Add 3–5 new machine placements in 90 days
- Each new machine adds ~$8K–$12K annual revenue at current margins
Explore Micro-Market Expansion
- Micro-markets drive 23% higher average transaction value
- Target offices with 50+ employees — too large for single machine, too small for cafeteria
- Self-checkout kiosk + open shelving format
- Higher margin products: fresh food, prepared meals, specialty beverages
With dedicated effort, adding 5 machine placements at ~$10K each could grow revenue from $58K to $108K within 12 months — a 85% increase. Combined with marketing visibility and micro-market entry, a $150K+ revenue run rate within 18-24 months is realistic for an engaged operator.
Recommendation
Deal Verdict: Proceed with Caution
If Pursuing This Deal
| Factor | Guidance |
|---|---|
| Target Price | $30K – $50K (composite of SDE multiple and net asset value). Do not exceed $50K given the scale and risk factors. |
| SBA Loan | Clarify immediately: does buyer assume? Can it be paid off from proceeds? What are the terms? This is the deal-breaker. |
| Location Contracts | Request copies of all placement agreements. Verify transferability. Get count of active machines and per-machine revenue. |
| Equipment Audit | Physical inspection of every machine. Age, condition, maintenance logs. Verify that $165K book value reflects reality. |
| Naturals2Go License | Confirm transferability, ongoing obligations, supply chain access for new owner. |
| Growth Thesis | This is only worth acquiring if the buyer intends to actively grow it. As a passive investment at current performance, the returns don't justify the risk or capital. |
The core vending economics work. The machines are modern. The healthy niche is on-trend. But this is a business that has been operated as an afterthought, and it shows in the numbers, the marketing, and the growth trajectory. The opportunity here is not in what the business is today — it's in what it could become with a dedicated operator, basic marketing, and an aggressive location acquisition strategy. Price accordingly: you're buying potential, not performance.