What should I ask about the industrial washing equipment at a linen rental business?
Ask for a list of every washer, dryer, ironer and folder with its age, capacity and service history. Then ask what has failed, what is leased and what the seller expects to replace soon. Linen plants stop without their machines, so downtime and parts matter as much as age.
Get a full equipment schedule with the make, model, serial number, age and condition of each machine. Go on site and match the list to what you see. Ask whether the machines run all shifts or sit idle part of the day, because heavy use wears them faster.
Request repair and maintenance records. Look for repeat failures, long outages and reliance on one technician. Ask how quickly parts arrive and whether any machine is old enough that parts are hard to find. Ask what a breakdown does to deliveries and whether the plant has backup capacity.
Find out how the plant uses water, energy and chemicals, since those are large costs. Ask whether recent upgrades improved efficiency and what the utility bills look like through the year. A tired machine can look cheap but cost more to run. Check ownership. Some equipment is financed or leased, with a lender holding a claim. Ask your lawyer to confirm what you would take over. Have an independent technician inspect the key machines and give a view on remaining life, then plan replacement spending with your accountant and lender.
Key takeaways
- Request a schedule of each machine with age, use, service and ownership.
- Ask what a breakdown does to deliveries and whether backup capacity exists.
- Have a technician inspect the key machines and estimate replacement timing.
- Compare utility and chemical costs across the year before judging efficiency.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
- 02Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 04Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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