How do I judge the condition of a tree service’s chippers and bucket trucks?
Ask for maintenance logs, inspection records and repair invoices for each chipper and bucket truck, then inspect them yourself and have a qualified mechanic do the same. Pay special attention to the lifting equipment, because failures there are costly and dangerous. Check engine hours, hydraulics, blades and how the equipment is stored.
Tree service equipment works hard and is expensive to repair, so the condition of each unit shapes what you will spend after closing. Begin by asking for a full equipment list with age, hours of use, purchase records and service history, then compare it to what you find on the yard.
Inspect the chippers for blade wear, feed system condition, hydraulics and signs of rushed repairs. For bucket trucks, ask for inspection and testing records covering the boom, the controls and the insulating parts, and have a qualified technician examine them. Do not rely on your own eye for lifting equipment. Ask how the crew treats the machines. Cleaned, greased, well stored equipment often points to a disciplined operation. A yard full of half-repaired units suggests the opposite. Confirm ownership and financing, since many units are financed or leased. Your lawyer can search for claims against them, and your accountant can help review the depreciation and replacement timing.
Finally, plan for the next few seasons. Ask the seller what repairs are coming and which unit will need replacing first.
Key takeaways
- Request logs, inspection records and invoices for every unit, then inspect in person.
- Have a qualified technician examine the lifting equipment rather than relying on your own eye.
- Confirm ownership and financing, and plan which unit needs replacing first.
- Ask the seller which repair is coming next and which unit will need replacing first, then plan your cash around it.
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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 CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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