What should I check before buying a car audio and remote starter shop?
Check the people first, because this is an installer-dependent shop: who does the installs and whether they will stay. Then look at the bay and tools, the rework and comeback records, open install warranties, which brands the shop may sell, its dealership and fleet referrals, and the lease. Ask each brand whether its authorization transfers.
A car audio and remote starter shop sells skill as much as product. The wiring work is done by a few people, and the reputation sits in their hands. A buyer who looks only at the sales report can miss that. These checks cover the people, the work and the contracts.
The installers
Ask who performs the installs, how long each has been there, and whether any of them is the owner. If the owner does the hardest work, you are buying a role as well as a business. Ask whether the installers would stay under new ownership, and be careful about how and when you approach them. Your lawyer can advise on the right sequence.
Bays, tools and rework
Walk the install bays and look at the diagnostic tools, programming equipment and lifts. Ask for the comeback log, meaning jobs that returned for a fault, and how the shop handled each. Ask for a list of open install warranties, and ask your lawyer whether they carry forward.
Brands, referrals and the lease
Ask which product lines the shop is authorized to sell, then ask each brand whether that authorization transfers to a new owner. Do not assume it does. Look at where the work comes from, such as dealerships and fleets, and whether those relationships rest on a person. Read the lease for term and renewal rights, and see how landlord consent works.
Compare with similar shops
The same questions come up in other installer trades. The window tint checklist covers film and coating shops, which differ from wiring work, so use it only as a prompt.
Related reading
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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 CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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