How do I check the industrial sewing machines before buying a garment business?
Check the sewing machines by matching each type to the work the factory does, asking for service records, confirming parts and a technician are available, and finding out which units are owned, leased or financed. Then see them run on real production, not only on a demonstration.
On a sewing floor the machines are the means of production, and they are not interchangeable. A line set up for knit garments needs different equipment from one built for woven jackets. Before you rely on the equipment list in a sale package, walk the floor with someone who knows the work, and ask the questions below.
Match the machines to the work
List what the factory makes, then list the machines: lockstitch, overlock, coverstitch, cutting tables, pressing and finishing equipment. Check that each product has the machines it needs and that nothing sits idle. Ask which operations are sent out because the factory lacks the equipment. Those gaps show what a future owner may have to buy.
Age, service and parts
Ask for service records and the name of the technician who looks after the machines. Find out whether parts are easy to get for each make, since older models can be hard to keep running. Watch operators use the machines and ask which ones they avoid. Where the numbers matter, an independent look at the equipment, as described on our page on assessing equipment condition, can help.
Who actually owns each unit
Some machines are leased, financed or lent by a customer. Ask for a list showing the owner of each one, and for copies of the lease or loan papers. Ask your lawyer how any lender’s interest in the equipment affects the purchase. A machine you thought came with the business may need to be bought out or returned.
- A machine list matched to each product line
- Service records and a named technician
- Parts supply for each make and model
- A schedule showing owned, leased and financed units
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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 CanadaGovernmentEquipment purchase financing for entrepreneurs
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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