What do you get when you buy a mobile oil change business?

A mobile oil change business is a route on wheels. What you take over may include service vans, the equipment fitted inside them, a way of buying oil and filters, an arrangement for taking away used oil, and a list of customers who expect a visit at a set time. Each piece is only as useful as the part of it that stays when the owner leaves, so ask about each one separately.

The vans and what is fitted in them

Find out which vans are owned, which are financed and which are leased, and whether the lender or lessor must approve a transfer. Ask who did the fit-out, what pumps, tanks and reels are installed, and how old they are. Have a mechanic look at the vans, and ask for the maintenance history. A van that is always on the road earns nothing while it is being repaired.

Oil, filters and used oil

Ask where the fluids and filters come from, whether pricing is set by a supplier agreement, and whether that agreement carries over to a new owner. Used oil has to go somewhere. Ask the seller to show you the collection arrangement for used oil and filters. Your lawyer can tell you what rules apply to storing and moving it.

Fleet and workplace accounts

Many mobile operators rely on a few fleets or workplace programs. Ask which customers are under a written agreement and which simply call when they need a visit. Read any contract for who can end it and on what notice. Where a customer’s approval is needed to transfer an agreement, ask the seller to raise it with them early.

How much depends on the owner

If the owner is the one driving, booking and answering the phone, that matters to you. Ask who the customers know by name, which employees run routes on their own and whether the seller will stay on for a handover. A route that runs smoothly without the owner is easier to take over than one that lives in the owner’s head.