How do I check where a sleep and mattress clinic sources its adjustable bases?
Ask for purchase invoices and supplier agreements for the adjustable bases, then find out whether pricing, warranty support and delivery terms are written down. Confirm with the supplier whether the arrangement would carry over to a new owner. Keep your questions specific.
Begin with the paperwork. Ask for invoices from the last year for adjustable bases and note the supplier, the models, the price paid and how often orders are placed. Then ask for any dealer or supply agreement. Look for what it says about minimum orders, territory, returns and how long it runs.
Next, think about the product after the sale. Adjustable bases are bulky, include motors and sometimes fail, so warranty handling matters. Ask how defective units are replaced, who pays for freight and how long customers wait. Read a sample of service records to see whether problems are common and how well the supplier responds.
Finally, check the relationship and its fragility. Does the clinic buy from one supplier, or several? Does it receive special pricing because of its volume or the owner’s history? Suppliers sometimes need to approve a new owner, so ask the seller to introduce you and ask your lawyer to look at the transfer terms. Compare product margins with the financial statements to see whether the numbers fit. Ask also what happens if a model is discontinued. A supplier that changes its line without notice can leave the clinic with unsold stock or unmatched mattresses, so find out how the seller has handled this in the past.
Key takeaways
- Collect a year of invoices for adjustable bases.
- Read supply agreements for minimums, returns and duration.
- Learn how defective units and freight are handled.
- Ask whether the supplier approves a new owner.
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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 CanadaGovernmentHow to diversify your supply chain
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