What should I check before buying a watch repair shop?
Before buying a watch repair shop, check what customer watches are on the bench and who owns them, how repair tickets and turnaround look, whether parts accounts with brand suppliers will carry over, what the timing and cleaning equipment is and its condition, and how income splits between repair and retail.
Customers’ watches sit in drawers and on the bench, supplier relationships live in one person’s head, and the skill is the product. A buyer’s checks should follow those facts. Here is where to look, in an order that tends to surface problems early.
Customer watches and unclaimed items
Ask for a list of every watch currently in the shop, with the customer, the job and its status. Some will be finished and waiting for pickup, some half done, and a few abandoned. Ask how unclaimed items are handled and recorded, and who carries responsibility for a watch lost or damaged around the sale date. Your lawyer can tell you how to handle that in the agreement.
Repair tickets and backlog
Repair tickets show how the shop really runs: what work comes in, how long it takes, and how many jobs are waiting. A long backlog can mean strong demand, or a single watchmaker who cannot keep up. Ask how customers are told about delays, and whether returned or redone work is common. Read a sample of tickets rather than a summary.
Parts accounts and equipment
Brand parts often come through supplier accounts that may not transfer to a new owner automatically. Ask each supplier what it requires. Look at the timing machines, ultrasonic cleaners and specialty tools, and ask who maintains them and whether any are owned by someone other than the seller.
Repair versus retail
- Which income comes from repair, and which from selling watches, straps and batteries
- Whether repair customers also buy from the shop
- Which services are sent out to other specialists
- Whether one brand or dealer relationship carries much of the business
The seller’s statements, reviewed with your accountant, should reflect that mix. If you are comparing trades, our page on what to check before buying a phone repair shop shows how different the issues are.
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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 CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
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