What should I check before buying a lawn mower repair shop?
Before buying a lawn mower repair shop, read the work orders month by month, count and inspect the parts stock for obsolete items, find out what customer equipment is still on the floor, and learn how many technicians can do the work without the owner.
A lawn mower repair shop is a different business from a lawn care company, which cuts grass for clients. This shop fixes the machines. What you are buying is a flow of repair jobs, a stock of parts, a set of tools and the people who can use them. The questions below help you see each one clearly before you decide anything.
Work order history
Ask for work orders by month for at least the last few busy seasons, not just a yearly total. A repair shop’s year rises and falls with the weather, so monthly records show how steady the work is and how much comes from regular customers versus one-off jobs. Compare the work orders with the deposits in the bank statements. They should tell the same story.
Parts inventory and old stock
Parts take up shelf space and cash. Ask for a count, and walk the shelves yourself. Look for parts for models that are no longer sold, and for stock that has not moved in years. Your accountant can explain how inventory is treated in your purchase. Ask the seller to separate current stock from old stock in the agreement.
Customer equipment on the floor
Most shops have machines that were dropped off and never collected. Ask how many there are, how long they have been there and what the shop does about them. Also ask about machines waiting for parts, and who is responsible for them after closing. Your lawyer can advise on how to handle abandoned units properly.
Technicians and tools
- How many people repair engines, and how long have they worked here?
- Does the owner do most of the complicated work?
- Which tools and diagnostic equipment belong to the business, and which belong to staff?
- Which brands is the shop trained and authorized to service?
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 is inventory
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
- 04Canada Revenue AgencyGovernmentInventory and cost of goods sold
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