What should I ask about an architecture firm’s model-making shop and large-format plotters?
Ask what the model shop and plotters produce for paying clients, how busy each machine is, who runs it and what shape it is in. Request service history and supply costs. Then judge whether the equipment earns its keep or mostly sits idle between presentations.
Start with how the shop earns its place. Ask which projects used physical models in the past year, and whether clients paid for them or the firm absorbed the cost as a sales tool. A shop that helps win proposals is a different asset from one that builds the odd presentation piece. Ask for a list of recent models, who built them and how many staff hours each one took.
Next, look at the plotters and any cutting or printing machines. Ask for their age, service records, consumable costs and who handles breakdowns. Check whether the machines are owned, leased or financed, and whether any lease would pass to you. Have your accountant or an equipment appraiser review the numbers instead of trusting the seller’s list. Ask how print volume has changed as more review moves to screens.
Finally, ask who actually runs the shop. If one technician knows the machines and the clients’ habits, that person matters as much as the equipment. Ask whether the firm sends models to outside makers when it is busy. Visit on a working day and watch how the space is used.
Key takeaways
- Tie every machine to the paying work it supports, not to the seller’s description of it.
- Request service records, lease papers and supply costs before you form a view on the equipment.
- Find out who operates the shop and whether that person plans to stay.
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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 CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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