What should I check before buying a gaming cafe or LAN centre?

A gaming cafe sells time on machines, and the machines, the software and the connection all wear out or expire on their own schedules. A board game cafe is a different case, because its assets are a library and a kitchen. Here the diligence list leans toward technology, contracts and the money players have already paid in. Work through it with the seller and your advisers.

Hardware and its refresh cycle

Ask for a list of every station, console and display with purchase dates and repair history. Players notice slow machines, so ask when the owner last upgraded and what the next round will need. The equipment checks for an entertainment centre apply here too. Ask whether a refresh is due soon and who would pay for it.

Licences, connection and data

Ask whether the game, launcher and software licences are commercial ones, in whose name they sit and whether they can move to a buyer. That is a contract fact for your lawyer to confirm. Review the internet service agreement for bandwidth, term and what happens on a change of owner. Ask how player accounts and payment details are stored and who can reach them.

Members, balances and sponsors

Prepaid time and memberships are promises you take over. Ask for a report of every stored balance and how the seller treats it in the books, and ask your accountant how it should be handled at closing. Read any tournament, league or sponsor agreements and ask whether they continue after a sale. Then read the lease for term, renewal and transfer.

• Station list with purchase dates and repairs
• Software and game licence documents
• Internet and phone service contracts
• Membership and stored balance report
• Sponsor, league and event agreements