What should I check about a machine shop’s compressed air and electrical capacity before buying?
Ask for the electrical panel layout, a list of machines with their power needs, and a drawing of the air lines and compressor. Then check what is already at its limit. An electrician and a compressor technician can tell you whether today’s equipment is being carried comfortably or barely.
Begin with a simple map. Which machines draw the most power, and which circuits feed them? Ask for the panel schedules and any past electrical work. Look for extension cords, doubled-up breakers and machines that trip the supply when they start together. Ask what the supply into the building is rated for, and whether there is room to grow.
Do the same for compressed air. Find the compressor, the dryer, the tank and the lines. Listen for leaks, look for long runs of undersized pipe, and watch whether pressure drops when several machines run at once. Ask how often the compressor runs, how old it is and what it has cost to repair.
Then think about your plans. If you intend to add a machine, will the building support it, or does the utility need to upgrade service, and who would pay for it? Ask the seller about any quotes received, how long past upgrades took and whether production stopped while they were done. Bring a qualified electrician and a compressor technician on a walk-through before you commit, and ask your lawyer who is responsible for building systems under the lease or ownership.
Key takeaways
- Map the heaviest machines, panels and circuits, and look for overloaded or improvised wiring.
- Check air lines for leaks, pressure drops and an ageing compressor.
- Bring an electrician and a compressor technician on a walk-through before committing.
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Due diligence
Financing
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 CanadaGovernmentWhat are the steps to buying a business?
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