Do I need to inspect a commercial cleaning firm’s floor machines before taking over?
Yes, look at them, because floor machines are a real part of what you are buying. Ask for a list with age and service history, run each one, and confirm that the firm owns it rather than leases or borrows it. Have a technician check the important machines and ask what replacement will cost.
Floor scrubbers, buffers and extractors do not always look impressive, but a cleaning firm that cannot run them cannot do its contracts. Start with a list from the seller: make, model, age and where each machine lives. Visit the storage space and the sites. A machine locked in a client’s closet may belong to the client.
Test each machine. Check the batteries, the pads or brushes, the hoses and the cords, and see how the machine behaves under a normal job. Ask for service records and receipts. A technician or the supplier’s service department can tell you which models are near the end of their useful life.
Ownership matters as much as condition. Confirm what is owned outright, what is leased and what a lender holds a claim over. Leased machines may need new agreements in your name. Finally, put numbers to replacement. If several machines will need replacing soon, a lender may help with equipment financing, and the cost should shape what you offer. An accountant can guide that part. Photograph serial plates and keep a copy of the list for the purchase agreement.
Key takeaways
- Get a machine list and check each one, including those stored at client sites.
- Confirm which machines are owned, leased or pledged to a lender.
- Estimate replacement costs for ageing machines before you decide.
- Check whether any machines sit at client sites and who owns them.
Related reading
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Selling
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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