How do I judge the age and condition of a bike shop’s rental fleet?
Ask for a fleet list with the purchase date, model and repair history of every bike, then inspect a good share of them yourself. Work out how many are near retirement, because replacing them will fall on the new owner.
Rental bikes live hard lives. Ask the seller for a register of the fleet that shows when each bike was bought, what it is, how often it has been rented and what has been repaired. If no register exists, treat that as information about how the fleet is managed, and build one yourself during your visit.
Then check the bikes with your own hands. Look at frames for cracks and rust, then brakes, tyres, chains, gears, cables and seats. Spin wheels, squeeze levers and listen for grinding. If you are not a mechanic, bring one. A rental fleet should look consistent, and a mix of tired and tidy bikes can show where maintenance has slipped. Check helmets, locks and accessories, too.
Next, ask how the shop retires bikes. Do old units go to a sale rack, get stripped for parts, or stay in rotation? Ask when the next large purchase was planned, and how much is already budgeted. Look at the damage record and at any claims or accidents. Your accountant can help you plan for replacement over the first seasons so it does not come as a surprise. Ask the seller to confirm that every bike listed is owned outright.
Key takeaways
- Ask for a fleet register showing purchase dates, use and repairs for each bike.
- Inspect a good sample with a mechanic and note the weak ones.
- Learn how bikes are retired and what replacement the new owner must fund.
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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 CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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