What should I check before buying a mobile hydraulic hose repair business?
Check who owns or leases the service vans and the crimpers, saws and stock fitted in them, how call-out customers are tied to the business, who answers the phone after hours, whether the technicians will stay, and what terms the stocking supplier offers a new owner.
A mobile hose repair business is a set of vans, a customer list and a few skilled people. When a machine fails in a field or at a work site, the customer calls whoever can arrive quickly with the right hose already made. A buyer is really taking on that promise. The checks below look at what stands behind it.
The vans and what is fitted in them
Walk through each van. Note what is installed: crimpers, cut-off saws, on-board hose and fitting stock. Ask who owns each van and who owns each tool, since some may be leased or financed. Ask for maintenance records. Our page on checking a paving company’s equipment shows the kind of condition questions to ask, and an independent appraiser can help if the fleet matters.
Call-out customers
Ask for the customer list by type, such as construction, forestry, farm and municipal fleets. Then find out how the work arrives. Some customers have accounts or standing arrangements, while others call once. Ask the seller how many calls came from repeat customers and what would make a large customer move. Meet the main accounts after the seller agrees.
After-hours cover and the phone
Breakdowns do not follow business hours. Ask who answers the phone at night and on weekends, how calls are dispatched and whether the owner personally takes the late calls. If the owner does, think about how you would cover that work and what it would cost you in sleep and staffing.
Technicians and the stocking supplier
The people driving the vans hold the customer relationships. Ask how long each has stayed and what they have been told about the sale. Ask also about the supplier that keeps the vans stocked, and whether its terms carry over to a new owner. The supplier will set its own terms, so ask early.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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