How do I judge the condition of a trucking company’s tires and tire program?
Look at both the tires and the program behind them. Ask who buys and services them, how wear and pressure are checked, and whether records exist per unit. Uneven wear across a fleet often points to alignment, maintenance or driver habits, so ask what the company did when it spotted it.
Walk the yard and look at tires on several tractors and trailers. Compare tread across a set, check for odd wear on one side or on a single axle, and look for mixed brands or mismatched pairs. These cost money to fix and also show how closely someone watches the equipment.
Then ask about the program. Is there a supplier contract, a service truck that visits, or an in-house crew? Who checks pressure, and how often? Ask whether retreads are used, how casings are tracked and how blowouts or roadside failures are recorded. A company that logs every tire event can show you cost per unit, which is useful when you build your own forecast.
Ask what the next year looks like. How many units are due for new tires soon, and has the seller held off buying to look better before a sale? Deferred tire spending flatters recent profits but lands on your books. Check whether any supplier credit or prepaid arrangement exists and whether it carries over to you. Have an independent mechanic confirm what you see, and ask your accountant how to treat expected replacements in your numbers.
Key takeaways
- Inspect tread and wear patterns across several units, not just the newest.
- Ask for per-unit tire records and supplier arrangements.
- Look for postponed replacements that would fall on you.
- Ask whether replacements were postponed before the sale and what the next stretch of spending looks like.
Related reading
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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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