How do I check a cabinet shop’s design software licences and drawing files?
Ask for a list of every design and cutting program the shop uses, in whose name each licence is held, and whether it can pass to a new owner. Then open the drawing files yourself to see that they are organized, readable and backed up somewhere other than one computer.
Design software often runs the whole shop, from drawings to the cutting machine. Ask which programs are used, who pays for them, and whether the licence sits in the company’s name or the owner’s personal one. Ask the vendor, with the seller’s consent, whether the licence can be assigned or must be bought again. Your lawyer can read the licence terms.
Next, look at the files. Ask where past jobs are stored, how they are named and whether you can find a job from three years ago in a few minutes. Open a few and confirm they run on the current version. Files saved in an old or unusual format may not open later.
Check backups and access. Is there a copy off the premises, and who holds the passwords? Ask whether any designs belong to customers or outside designers and what the shop may reuse. Confirm that every program in use is properly licensed, since unlicensed copies are a risk you would inherit. Also ask how staff learned the software and whether one person is the only expert. If the designer plans to leave, a buyer needs time to learn the system, so ask what training or support the vendor offers and what it would cost to keep running.
Key takeaways
- List every program and find out whose name each licence is in.
- Open real drawing files and test that past jobs can be found.
- Confirm backups, passwords and ownership of customer designs.
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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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