What should I check before buying a powder coating shop?

A powder coating shop is mostly its line and its customers. Walk the floor with someone who knows the equipment, ideally a technician who has serviced coating ovens, and ask for maintenance records. Our guide on metal fabrication shop due diligence covers the neighbouring trade; this page looks at the coating line itself.

The line and its condition

Look at the curing oven, the booth, the pretreatment or wash stage, the blast cabinet and the conveyor if there is one. Ask how old each piece is, what has been repaired and what the owner would replace next. Ask whether the oven holds an even temperature across its full size. A tired oven can limit what the shop can coat well, and replacing one is a large job.

Tooling, powder and colour stock

Racks, hooks and masking supplies are easy to overlook. Ask for a list of racks and hooks and whether they are owned, worn or built for particular parts. Count the powder on hand and ask how much is stale, discontinued or tied to one customer. Colour stock is only useful if it still sells. Decide with your accountant how stock will be counted at closing.

Customers and the building

Ask which accounts matter most, how long they have been with the shop and whether they know about the sale. Then read the lease. Coating needs strong power, gas, ventilation and sometimes compressed air. Check that the landlord will let you stay on similar terms and that the premises suit the work.

• Ask your lawyer which permits and approvals the shop holds and whether they carry over to a buyer.
• Ask about past environmental or safety orders, and how waste is handled.
• Confirm who owns the equipment and whether any of it is leased or financed.