What should I check before buying a motorcycle repair shop?
Before buying a motorcycle repair shop, check the seasonal work cycle and any winter storage income, which technicians work on which brands and eras, where parts come from without a manufacturer agreement, whether customer bike records will transfer, and which specialty tools are owned.
A service-only motorcycle workshop is a different business from a dealership. There are no new bikes on the floor and no manufacturer agreement to take over. What you are buying is skilled people, a customer list, tools and a rhythm of work that follows the riding year. Check each of those directly rather than assuming they carry over.
The seasonal cycle
Ask for monthly work and revenue records over several years. Many shops are very busy before the riding season and quiet afterward. Some offset the quiet months with winter storage or off-season rebuilds. Find out how much of the income depends on storage, and whether it comes with a contract or just goodwill.
Technicians and their skills
Ask who does the work, and on which brands and eras of bike. A technician known for older machines or one marque may be the reason customers come. Talk with the seller about whether those people will stay, and whether the seller will help introduce you to the regulars during a handover.
Parts, records and tools
- How parts are sourced without a manufacturer agreement, and which suppliers hold the accounts.
- Customer bike records and service histories, and whether you may keep using them.
- Specialty tools and diagnostic equipment, and whether any are leased or financed.
- Bikes stored on site, and who is responsible for them at closing.
Many of these checks match what buyers do for a car shop, so this page on shop equipment is worth reading alongside. Ask your lawyer how stored customer bikes should be handled in the agreement.
Related reading
15 pages on the same subject, grouped by topic.
Buying
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Selling
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?
- 03Business Development Bank of CanadaGovernmentWhat is inventory
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