What should I check before buying a boat repair shop?
Before you buy, look at the people, the paperwork and the machinery: who services engines and how long they have stayed, which makers have authorized the shop and whether that carries over, and the shape of the lift, crane and yard. Then read the job files for repeat owners and compare the spring backlog with the fall rush.
A boat repair shop services other people’s boats. It does not hold unit inventory the way a dealership does, so floor plan lines and aged stock are not your main worry. Your worry is whether skilled people, equipment and authorizations stay in place, and whether work is spread across the year. Start with who does it.
Technicians and training
Ask who works on engines, electrical systems and hulls, how long each has been there, and what training they hold. Marine work is specialized, and a good technician is hard to replace. Find out who the customers ask for by name. If the owner is the senior mechanic, think about how you would cover that role.
Engine-maker authorizations
Many shops are authorized to service and do warranty work for particular engine makers. Ask which ones, what the maker requires of the shop, and whether the authorization carries over to a new owner. Contact the maker early. A shop that loses an authorization can lose a large share of its customers with it.
Haul-out, lifts and the yard
Inspect the travel lift, trailers, cranes, stands and any dock or ramp. Ask for maintenance and inspection records, and who owns each item. Walk the storage yard and shrink-wrap area. Ask what the storage agreements say, how damage claims are handled and whether the insurance fits the work done on site.
Spring backlog and fall rush
Boat work comes in waves. Compare booked spring commissioning and launch work with the fall haul-out and winterizing rush, and check how the shop fills the quiet months. Ask the owner how the schedule is kept.
Customer boat records
Look at job histories by boat and owner. Repeat customers, seasonal contracts and storage clients show how stable the income is. For dealership-style checks that also apply here, see what to check before buying a boat dealership.
Related reading
12 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat should I check before buying a boat dealership?
- Expert answerHow can I tell whether a boat dealership is profitable before I buy it?
- Expert answerHow do I find a boat dealership for sale?
- Expert answerWhat should I check before buying a boat rental business?
- Expert answerHow do I find a boat builder for sale?
- Expert answerHow do I find a small engine repair business for sale?
- Expert answerHow do I check hoists and shop equipment before buying an auto repair shop?
Selling
Due diligence
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?
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.