How do I check an orthotics business’s fabrication setup before buying?
Ask where each device is actually made: in-house, at an outside lab or both. Then look at who has the skills, what equipment is needed, how long a device takes, how often remakes happen and how much the business relies on one supplier. The answers show what you would be taking over.
Two orthotics businesses can look alike from the street and run very differently behind the counter. One may grind and finish every device in a back room. Another may take scans and ship them to a lab. A third may do both. Which model you are buying decides what staff you need, what equipment you inherit and how exposed you are to one supplier, so ask early.
Find out where each device is made
Ask the seller to walk you through a device from first assessment to hand-off. Where does the casting or scan happen, and where is the device made? Ask which products go to outside labs and why. A seller who can describe this plainly, and show you the work area, gives you a better picture than a summary page can.
In-house production: people and equipment
If devices are made on site, the skill sits with particular people. Ask who does the fabrication, how long they have been there and whether anyone else can do it. Look at the grinders, ovens and other lab tools: their age, service records and whether they are owned or leased. A lab that works only because one technician stays is a risk worth understanding.
Outside labs and supplier dependence
If a lab makes the devices, ask whether there is a written supply arrangement, how many labs the business uses and what happens if one stops. Ask about turnaround for a normal order and for a rush. Find out who pays when a device is made wrong, and whether the supplier’s terms would carry over to a new owner.
Remakes and patient follow-up
Ask how often devices come back for adjustment or remaking, who covers the cost and how the business records it. A tidy log of follow-ups tells you how the clinic treats its patients. Missing records are a reason to ask more questions, not an answer in themselves.
Related reading
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Due diligence
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 CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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