What should I check before buying a wire harness manufacturer?
Check the people first, because harness work is hand labour. Then look at crimp tooling, test fixtures and who owns them, drawing and revision control, how copper and connectors are sourced, and which quality certifications the seller says the shop holds. Ask for each in writing.
A wire harness shop is not a surface-mount line with a few people watching machines. Check the trained hands, the tooling and the customer’s drawings. The general due diligence guide for electronics assembly leans toward SMT lines and component stock, so this page adds the questions that are specific to harness work.
Assemblers and bench know-how
Ask how long each assembler has been with the shop, who trains new people and who can read a complex drawing. If the owner or one senior person holds the know-how, plan for a long handover. Ask what happens to output if two skilled people leave in the same month.
Tooling, fixtures and drawings
List the crimp presses, applicators and cutting equipment, with their age and service history. Then ask which test boards and fixtures the customers own and which the shop owns. Customer-owned fixtures usually do not transfer; check the purchase agreement. Confirm that every drawing is current and that the shop controls revisions, so people build to the latest version.
Supply of copper and connectors
Find out who supplies wire, terminals and connectors, and whether any part is sole-sourced or specified by a customer. Ask how the shop handles shortages, and whether supplier terms depend on the current owner’s relationships.
Certifications and customers
- Ask which quality certifications the shop holds, ask to see the certificates, and ask how a change of owner affects each one.
- Ask the customers’ quality teams how they rate the shop, with the seller’s permission.
- Ask which accounts are tied to the owner personally.
Related reading
10 pages on the same subject, grouped by topic.
Due diligence
- GuideElectronics assembly manufacturer due diligence
- ChecklistManufacturing business buyer checklist
- Expert answerWhat environmental checks do I need before buying a business?
- GuidePrivate-label brand due diligence
- GuideElectronics retailer due diligence
- ComparisonClosing adjustments vs the post-closing true-up
Buying
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 is inventory
- 03Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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