What should I check before buying a commercial kitchen equipment repair business?

A commercial kitchen repair firm keeps restaurants running. When a fryer, walk-in cooler or dishwasher fails, the kitchen cannot wait. The service model depends on urgency and on skilled technicians who are available at all hours. Look closely at the people, the paperwork and the parts.

Maintenance agreements and revenue mix

Ask for every preventive maintenance agreement, with its length, what it covers and how it renews. Then split revenue between those agreements and one-off service calls. Agreements bring steadier work; calls can swing with weather and restaurant closures. Check whether any chain account can end its arrangement on short notice, and whether a change of ownership gives it that right.

Manufacturer authorizations

Some repair firms hold authorizations to carry out warranty work for equipment makers. These can bring in steady jobs. Ask which authorizations exist, who holds them and whether they pass to a new owner or must be applied for again. Speak with the manufacturers if the seller agrees, and ask your lawyer to read any written terms.

Parts, vans and call-outs

Check the parts room and each service vehicle against the inventory records. Look for outdated or unusable parts and ask how stock is replenished. Find out how after-hours calls are shared, who is on call and how that is paid. Emergencies are a general risk, so confirm the system works without the owner.

Technicians and certification

The technicians are the business. Ask how long each has worked there, how they are paid, and what trade qualifications they hold. The trade questions belong with your lawyer and the relevant regulator, for example the questions on a refrigeration contractor. Meet the senior staff and ask what would keep them with a new owner.