How can I tell if a music store’s repair technician is essential to the business?
Separate repair income from the rest, then ask whose customers they are, whether the technician is staying and how easily the skills can be replaced. If customers, teachers and schools deal with the technician by name, the person is essential to the shop.
Start with the numbers. Ask for repair revenue and the cost of the technician, parts and tools, kept apart from retail. Then ask how much repair work leads to other sales, such as strings, accessories and rentals. A technician who brings in customers is worth more than the repair line shows.
Next, ask about relationships. Do customers ask for the technician by name? Do music teachers and school programmes send work because of that person? Speak to a few of them, with the seller’s agreement, and ask what they would do if the technician left.
Ask about the person. Are they an employee or a contractor, and what do they own? Tools and bench equipment may be theirs. What is their view of the sale, and would they stay? A conversation before closing is wiser than hoping. Finally, consider replacement. How long would it take to hire someone and what skills are scarce locally? Your lawyer can advise on an employment or contractor agreement. Consider a trial arrangement. If the technician is willing, ask to work with them for a period after closing, or arrange an introduction to a second technician. Having a backup plan protects you whatever the answer turns out to be.
Key takeaways
- Separate repair income and costs from the rest of the shop.
- Speak to teachers and schools about who they rely on.
- Talk to the technician early about staying and about tools they own.
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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