Should I buy a precast concrete plant or start one?
Compare what the existing plant already has with what you would have to build: the mould library, yard and curing space, lifting gear, a trained crew, standing with contractors and engineers, and an order history. Buying gets you those on day one. Starting lets you choose each one, but you earn them slowly.
Moulds, a yard, cranes and a crew make the product, and contractors and engineers decide whether to trust it. Buying a plant brings you all of that at once, along with whatever problems come with it. Starting one means building each piece yourself. Neither route is better in general. The question is which pieces you can build more easily than you can inspect and inherit.
Moulds, yard and lifting gear
Moulds take time to design and build, and a plant with a deep library can quote on work a new plant could not. Walk the yard and look at the condition of the forms, the curing and storage space, and the cranes and handling gear. Ask which items are owned outright and which are leased. For a start-up, list each item and ask how long it would take to get it in place.
People and know-how
A trained crew is hard to hire quickly. Ask who runs the casting, who does quality checks and who the owner relies on, then ask whether those people plan to stay. A new plant has to train from nothing, and that learning shows up in rework and delivery dates.
Standing with customers and engineers
Contractors and engineers may specify products from suppliers they already know. An existing plant may have that standing and an order history to show it. Ask whether it belongs to the owner personally or to the business, and whether the main contacts would keep ordering after a sale. A new plant has to win that trust one project at a time.
Questions to settle before you choose
- Which parts of this plant would take me longest to build myself?
- Which parts of it would I have to fix or replace after buying?
- Do I have the time to wait for customers to trust a new supplier?
Related reading
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Buying
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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
- 04Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
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