What should I check about a firewood business’s splitter, processor and kiln equipment?
Watch each machine run under load, ask for service records and find out which one limits daily output. The processor and kiln are usually where the business is most exposed if something breaks down. Ask for service dates too, not only totals.
Get a list of the equipment with make, model, year, hours and who owns it. Confirm that each unit is in the sale and has no loan against it. Ask for maintenance records, blade and part replacements, and any major repairs. Ask what spare parts the business keeps on hand and which ones take a long time to arrive when ordered.
Ask to see the machines work. A processor or splitter running a full load shows noise, leaks and slow cycles that a sitting machine hides. Have a mechanic look at hydraulics, engine, cutting parts and safety guards.
For a kiln, ask how it is heated, how batches are loaded and tested, and what the energy use looks like in operation. Check the building, the controls and the fire protection. Ask who is trained to run it and whether any records are kept for each batch. Think about capacity. Which machine slows everything else, and what would a breakdown in peak season cost in lost orders? Ask what replacement will be needed soon and how it might be financed. An equipment appraiser can add an independent view for larger items, and your insurer should review the fire and safety side. Check the shelter and power supply for the equipment as well, since weather and wiring problems shorten machine life.
Key takeaways
- Watch each machine run under load, not parked in the yard.
- Ask which machine limits output and what a breakdown would cost.
- Inspect the kiln’s controls, building and fire protection.
Related reading
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Buying
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Financing
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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