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Due diligenceExpert answer · 1 min read

What should I ask about an RV shop’s dependence on a few dealerships for overflow work?

Ask which dealerships send work, how much each sends, and whether any agreement exists in writing. Then ask how those jobs are priced and paid, and what happens if a dealer brings its service in-house. A handful of senders is a concentration risk, even when the relationships are warm.

Start with a list of dealerships by the work they referred over the last full year, shown by both job count and revenue. See whether one name dominates. Ask how long each relationship has lasted, who at the shop manages it and whether that person is staying after the sale.

Then ask how the work arrives. Is it a standing arrangement or favours when the dealer is busy? Ask how the shop is paid, how quickly, and whether the dealer sets the labour rate. Late payers and tight rates both hurt, so look at the oldest unpaid invoices.

Consider also why the dealers send it. They may lack bays or technicians, and that may change if they expand. Ask whether any have hired more staff or built larger shops. Finally, ask to meet the main dealers with the seller before you commit. A warm introduction before closing is worth more than a promise afterward. Your lawyer can advise on any written terms. Ask the seller what the shop would do if the largest sender stopped tomorrow. A calm, specific answer, with other sources of work in view, suggests the owner has thought about the risk before you raised it.

Key takeaways

  • Rank dealerships by jobs and revenue sent over the last full year.
  • Ask how the work is priced and how fast each dealer pays.
  • Meet the main dealers with the seller before you commit.

Sources

This answer is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Business Development Bank of CanadaGovernment
    How to conduct due diligence when buying a business
    bdc.ca·Checked Oct 21, 2026
  2. 02
    Business Development Bank of CanadaGovernment
    What are the steps to buying a business?
    bdc.ca·Checked Oct 21, 2026
  3. 03
    Business Development Bank of CanadaGovernment
    Major pitfalls to avoid when negotiating a purchase agreement
    bdc.ca·Checked Oct 21, 2026

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