What should I ask about a brewery’s canning line and its maintenance history?
Ask who owns the canning line, how reliably it runs, and what repairs and downtime it has had. Find out whether the brewery cans its own beer or hires a mobile service, because that changes what you are actually buying.
Start with ownership. A canning line may be owned outright, financed or leased. Ask for the agreement if it is not owned, and check what happens to it on a sale. Mobile canning services are common among smaller breweries, so confirm whether this line belongs to the business at all.
Then ask for the maintenance record. How often does the line stop, what usually fails, and how long do repairs take? Ask how seam quality and fill levels are checked and who does it. Ask about spare parts, since a line that waits weeks for one component can leave stock unsold. Request a demonstration of a full run. Finally, ask about people and plans. Who sets up and runs the line, and could another person take over? Is the line sized for current volume, or is it already limiting sales? Ask what upgrading would involve and how the seller would finance it. Your accountant can compare leasing with buying, and a technician can judge the machine independently. If you are borrowing to buy, tell your lender what the line is and how it is held. Equipment that secures an existing loan changes what a lender will accept, so settle the ownership question before you build a financing plan around it.
Key takeaways
- Confirm the line is owned by the business, not leased or borrowed.
- Ask for repair history, downtime causes and spare parts arrangements.
- Watch a full run and ask who operates and sets up the line.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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