How do I find out how often an arcade’s machines are down for repairs?
Ask for the repair log, parts and service invoices, and earnings by machine, then compare them. A machine that earns well but shows up often in the repair records is a different asset from one that rarely breaks. If no log exists, that tells you something too.
Begin with the paperwork. Request service invoices, parts orders and any technician notes, and line them up against a list of every machine. Patterns show quickly: the same cabinet appearing again and again, or a whole group of older machines clustered in the invoices. Ask whether anything is under a maker’s service agreement and what it covers.
Next, cross-check with money. If takings by machine are recorded, look for dips that match repair dates. If the seller keeps no log at all, ask staff, not just the owner, how often something is out of order on a normal weekend. Visit on a busy evening and count the machines showing an out-of-order sign.
Finally, ask who does the fixing and what happens if that person leaves. Frequent repairs matter less when they are cheap and quick, and more when they depend on one specialist or on parts that are hard to find. Your advisor can help you weigh the likely repair costs when you review the financial statements. Keep notes as you go. A short list of what you saw, what you were told and which records you are still waiting for makes it easier to compare this arcade with any other you look at.
Key takeaways
- Match service invoices to a machine-by-machine list to spot repeat offenders.
- Compare repair dates with dips in earnings to see the real cost of downtime.
- Visit on a busy night and note which machines are out of order.
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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 CanadaGovernmentEquipment valuation: How to do it
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