How can I tell if a computer repair shop for sale is profitable?

A computer repair shop can show the same total sales as another and be a very different business. One may live on walk-in customers who come once and are gone. Another may serve offices that pay every month. Before you trust any profit figure, ask the seller to break the sales down. These are the splits that help you read the statements.

Walk-in work versus recurring clients

Ask for sales by customer type for the last few years. Walk-in repairs depend on location, reviews and foot traffic. Business clients on a monthly arrangement may be steadier, but ask who holds the relationship and whether the contract can move to you. Check how many of the largest clients are still active and how long each has stayed.

Labour, parts and resale

Labour income and parts or product income behave differently, so ask to see them apart. Hardware resale can lift sales while adding little to profit. Ask how the shop prices its time, whether it bills for diagnosis, and what happens to unsold parts and refurbished machines. Your accountant can help you compare the margin on each line.

Technician time and the owner’s role

A shop earns only on the hours its technicians can bill. Ask how long a typical ticket takes, how many tickets each person closes in a day, and how often a device comes back. Then ask how many hours the owner works at the bench and whether the statements include a wage for that time. If they do not, the statements may show more profit than a buyer who must pay a wage would see. Compare how an auto repair shop’s labour and parts sales are read for a similar method.