How do I check a garage door company’s installer and repair split?
Ask for revenue and job counts split by new installation and by repair or service, over several seasons, and check them against invoices. Then look at margin, labour hours and callbacks for each side, because the two kinds of work behave very differently.
The mix matters because the two sides run on different rhythms. Installs are scheduled, larger and tied to new builds or replacements, which can rise and fall with the housing market. Repairs are urgent, smaller and steady, and often lead to later installs. Ask the seller to split every job into one type or the other, and test a sample against the invoices.
Then compare how each side earns. Look at the time each type takes, the parts used, the travel involved and how often technicians return to fix a problem. A company that looks busy on repairs may be earning little on them if jobs are short and callbacks are frequent. Ask which side the seller would grow and why.
Finally, consider the staffing. Do the same people do both, or are there installers and separate service technicians? Losing one skilled technician can hit one side hard. Ask your accountant to produce the split from the books rather than from memory, and ask whether the statements record each type of work consistently. Ask what the busiest week looked like on each side, and what the slowest looked like, to see how steady each really is.
Key takeaways
- Split revenue and job counts by installs and repairs, and test a sample against invoices.
- Compare time, parts, travel and callbacks to see how each side really earns.
- Check whether the same technicians do both, or whether one side depends on a few people.
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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?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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