How do I check a snow business’s equipment breakdowns during past storms?
Ask for repair invoices, mechanic notes and a log of missed or late routes from the heaviest storms, then match them against each machine. Look for the same units failing repeatedly and for what the owner did when equipment stopped. Breakdowns that cost customers matter more than those that did not.
Snow work is judged on the worst nights. Ask the seller to name the storms that tested the fleet and describe what failed: a plow mount, a hydraulic line, a loader, a salt spreader or a truck that would not start. Then ask for the paperwork that proves it, including shop invoices, parts orders and any rental receipts.
Match each repair to a particular machine and see whether some units appear again and again. A pattern points to equipment near the end of its useful life. Ask what the replacement plan is and whether the company has budgeted for it, or whether the cost would land on you shortly after closing.
Also look at the human side of the response. Did the company have backup machines or rental arrangements? Did customers receive a call, or did they find out when the lot stayed unplowed? Ask about complaints, credits and contract terminations after a bad night. An equipment appraiser and your lender can help judge what the fleet can still deliver. Compare the winter sales with the repair spending for each season, so you can see whether one bad winter distorts the average.
Key takeaways
- Match repair invoices to individual machines and watch for repeat failures.
- Ask what the owner did when equipment stopped during a storm.
- Find out which units may need replacing soon and how it would be financed.
- Compare repair spending with revenue for each winter.
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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
- 03Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
- 04Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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