How do I check a laundromat’s washers and dryers for hidden repair costs?
Ask for the service and repair history of every machine, then inspect them yourself. Look at age, rust, door seals, drains and heat output. Call the technician who services them and ask which machines they expect to fail next, and why.
Begin with records. A seller who tracks repairs by machine can show you which units cause trouble. Ask for invoices, parts purchases and technician call-outs. If there are no records, treat the gap as a risk and rely more heavily on your own inspection.
Then inspect the machines. Run several cycles, listening for noise from bearings and checking door seals, drains, belts and heating elements for wear. Note the age and make of each unit and whether parts are easy to find. Dryers in particular can hide problems in venting and lint build-up.
Finally, speak with the technician. Ask which machines are nearing replacement and how common the breakdowns are. Find out whether the machines are owned outright, leased or financed, since payments carry on after a sale. Ask your accountant how to treat repairs and replacement in your projections, and an equipment appraiser can give a formal view if you need one. Ask, too, how the owner would spend money on machines in the coming seasons. A seller who has deferred replacements to boost recent results may leave a bill for you. Tie the repairs you find to any adjustment you request in the offer.
Key takeaways
- Request repair history by machine and treat missing records as a risk.
- Run machines yourself and inspect seals, drains, belts and dryer venting.
- Speak to the technician and find out which machines are leased or financed.
Related reading
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Selling
Due diligence
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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
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