How do I judge the age and repair history of a custom operator’s tractors and balers?
Ask for the service record on each tractor and baler, and read it alongside the hours, serial numbers and a physical inspection. Frequent repeat repairs on one machine matter more than its age alone. Hours alone can mislead you here.
Make a list of every machine in the sale with its make, model, year, serial number and hours. Check each against the seller’s list and against ownership documents, and ask whether any is leased or has a lien registered against it. Look for patched wiring, fresh paint over cracks and parts that do not match, since these can hide earlier trouble.
Then request the service history: receipts, shop work orders, parts purchases and notes on major repairs. Look for a steady maintenance routine and for repeating failures in the same system. Ask which machines are used hardest in peak season and which have broken down at a bad time.
Arrange an inspection by an independent mechanic or equipment appraiser, and have them test the machines under load if possible. A baler with worn pickup parts or a tractor with a leaking drive may look fine in the yard. Finally, ask what replacement is expected soon and what that would involve for you. The cost of replacing the oldest machines affects whether the business suits you, so factor it into your plan. Share the findings with your accountant and lender. Ask the seller what they would replace first if they stayed, because the answer is often honest.
Key takeaways
- List each machine with its serial number and hours, and confirm ownership.
- Read service records for repeated failures in the same system.
- Hire an independent mechanic and plan for replacing the oldest machines.
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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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