How do I find out whether a marine repair shop relies on one marina for referrals?
Ask for the job list for the last full year with the source of each job, then group them by marina or dock. If one marina sends much of the work, ask how the relationship started, whether anything is in writing and whether the person who manages it is staying.
Start with the job list. Each job should show where the customer came from: a marina, a boat owner’s own call, a broker or a yacht club. If the shop does not record sources, review a sample of invoices and ask staff to fill in the gaps. Group the totals by marina and check revenue as well as count.
Then explore the relationship. Ask how long it has lasted, who at the marina sends the work and whether the marina has its own service department or has ever considered one. Check for arrangements such as a referral fee or rent, and ask how the marina would respond to a new owner.
Look for other sources too. Do boat owners return on their own? Does the shop have a good name among other marinas? If you can, speak to the marina manager with the seller present. Their view of the shop’s work will tell you more than any list. Ask your lawyer to review any written arrangement. Ask what the shop does to win work beyond the marina, such as a website, boat shows or word of mouth. A shop that markets itself has more control over its future than one that waits for referrals.
Key takeaways
- Group a full year of jobs by marina and check revenue as well as count.
- Ask whether any referral arrangement exists in writing.
- Meet the marina manager with the seller present.
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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?
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