What should I check about an electrical contractor’s tools and test gear?
Ask for a full list of tools and test instruments, then inspect them and check their calibration and maintenance records. Confirm which items belong to the company and which belong to individual electricians, and ask what would need replacing in the first year.
A list is a start, but the condition is what matters. Look at test meters, insulation testers and similar instruments, and ask when each was last checked against a standard. Instruments that are out of date or without records can produce unreliable results, and that can expose the company if work is later questioned. Check also that any records are in the company’s name.
Ownership is often blurry in this trade. Electricians frequently bring their own hand tools, and some larger items may be leased or financed. Ask for a clear split between company-owned, employee-owned, leased and borrowed items, and check for any liens or loan balances on the equipment. What the company owns outright is what comes with the sale.
Finally, think about replacement. Ask which items are near the end of their life, which vehicles carry which tools, and what a realistic top-up would look like. Your accountant can show how equipment is carried in the statements, and your lawyer can write the equipment schedule into the agreement so everything you counted is actually delivered. Ask also where the tools are kept overnight and who has keys, since loss and theft are common in this trade.
Key takeaways
- Inspect test instruments and ask for calibration and maintenance records.
- Separate company-owned, employee-owned and leased items, and check for loans on the equipment.
- Attach a clear equipment schedule to the agreement so what you counted is what you receive.
Related reading
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Due diligence
Buying
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Selling
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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