How do I assess the equipment when buying a family entertainment centre?
Assess the equipment by listing every kart, machine, obstacle and game, then checking its age, maintenance log, parts supply and manufacturer support. Find out which items the seller owns and which are placed by a route operator, and ask an independent appraiser to value what is included.
In an entertainment centre the equipment is the product guests use. Karts wear, batting machines jam and games go out of fashion. Look at each item as something you will have to repair or replace, and ask how much of that the seller has already done.
Make a full list and read the maintenance files
Ask the seller for an inventory that names each item, its age and where it was bought. Then ask for the maintenance log. A log with regular entries tells you the equipment has been looked after. Gaps, or repairs made in a hurry, tell you where to look closely. Walk the floor with the person who does the repairs, not only the owner.
Parts and manufacturer support
Find out whether parts are still made, whether the manufacturer is still in business and how long a repair takes. A fleet from a supplier that has closed can be costly to keep running. Ask what spare parts the seller holds, and whether they are included in the sale.
Owned or placed? Then get an appraisal
Some games are owned by the venue, and others are placed by a route operator who shares the revenue. Only the owned items are yours to buy, and a placed machine may leave when the contract ends. For the owned items, an independent appraiser can give you a view of condition and remaining life, as in the arcade checks, rather than the seller’s own view.
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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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