What should I check before buying a stairlift and home lift dealer?
Check whether the manufacturer dealer agreement and territory pass to you, who the installed customers are and what service plans they hold, what warranty and callback duties remain on past installs, whether the technicians will stay, and where referrals come from. Ask your lawyer about licensing and inspection duties for lifts.
A stairlift and home lift dealer looks simple from the street: a showroom or a van, a few installers, a supplier. Underneath, the business rests on a handful of relationships and promises made to people in their own homes. Your checks should find out which of those would still be there after the sale, and which are tied to the person selling.
The manufacturer relationship
Ask for the dealer agreement and read it with your lawyer. Does it allow transfer to a buyer, and does the manufacturer have to consent? What territory does it give the dealer, and can it be changed? Ask whether the dealer buys outright or holds stock on other terms. If the brand is most of what the business sells, treat the manufacturer’s view of you as part of the deal.
The installed base and what it earns
Ask for a list of installed lifts with install dates, models and any service plan attached. Ask what the list needs to show before you rely on any recurring revenue. Ask how plans are renewed, how callbacks are handled, and what past installs still carry in warranty. Your accountant can help you separate service income from one-off installations, and check refurbished, rental and buy-back stock.
People and referrals
Installers and service technicians are hard to replace, so ask who they are, how long they have stayed and whether they would stay for a new owner. Ask where enquiries come from. Therapists, home care providers, contractors and word of mouth all matter, and some of those relationships belong to the owner personally. Ask what the seller will do to introduce you.
Rules on licensing and inspection of lifts are a legal question that varies by place, so ask your lawyer which apply to you.
Related reading
10 pages on the same subject, grouped by topic.
Due diligence
Buying
- GuideBuying an elevator service company in Canada
- Expert answerIs buying a home health equipment store different from buying a home care agency?
- Expert answerShould I buy an existing mobility store or start one?
- Expert answerHow do I find a non-emergency medical transport company for sale?
- Expert answerHow do I check the shred trucks before buying a shredding company?
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 CanadaGovernmentWorking with a broker to find a business to buy
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.