What should I check before buying a central vacuum installation business?
Check who sends the work, what stays after the owner leaves, and what you inherit from past installs. Look at builder and contractor relationships, the split between new installs and service calls, the manufacturer dealer arrangement, warranty promises to past homeowners, the crew, vehicles and tools, and how work follows new-home construction.
A central vacuum installer is not a shop with a counter. It is a crew, a set of trucks and a list of people who call when a house is being framed. Much of what a buyer takes over is relationships and routines, which can be hard to hand over. Your checks should follow the work from the person who sends it to the home where it ends up.
Who sends the work
Ask for a list of the home builders, renovators and contractors who refer jobs, and how long each has done so. Find out whether the relationships belong to the business or to the owner personally. With the seller’s permission, call a few of them. Ask what they would need to see from a new owner to keep sending work. The home builders association can help you understand how builders choose trades.
What the revenue is made of
Separate rough-in work done while a house is built, finish work when the unit is installed, and service calls on older systems. They behave differently. Rough-in follows construction activity, while service work comes from homeowners. Ask for records that show each stream by itself, so you can see which one carries the business.
Dealer status, warranties and equipment
Ask which manufacturers the business deals with, and whether the dealer arrangement continues for a new owner. Ask what warranty or service promises were made to past homeowners and who is expected to honour them. Look at the vans, tools and inventory of pipe and fittings, and ask how the crew is paid and whether the key installers will stay. Seasonality matters too, so ask how slow months are covered.
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 CanadaGovernmentWhat are the steps to buying a business?
- 03Canadian Home Builders' AssociationIndustryCanadian Home Builders' Association
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