What should I look at in a video production company’s drone and lighting equipment?
Inspect each drone and light in person, ask for service and flight records, and confirm who is qualified to fly. Then check ownership, insurance and any financing, since drones and lighting kits may be in a pilot’s or crew member’s name rather than the company’s.
Begin with condition. Power up every drone, check batteries, propellers, gimbals and controllers, and ask how many batteries have been retired. Ask for crash and repair history. Lighting is simpler, but test panels, stands, cables and the power gear, and look for damaged diffusers.
Next, the people and paperwork. Ask who flies, and what certificates and operating permissions they hold. Whether those are current, and which jobs need special permission, is something the regulator and your lawyer can tell you. The point for you is whether the company can keep flying after the sale if the pilot leaves. Check records of flights, maintenance and any incidents. Note whether those records are complete and up to date.
Then sort out ownership. Match serial numbers to purchase receipts, insurance schedules and any equipment loan. Gear owned by the seller personally may not transfer unless it is included in the agreement. Finally, think about replacement. Drones age fast and models are discontinued. Your accountant can help you compare the equipment’s condition with what it would cost to replace. Photograph serial plates and keep the images with your notes for later comparison.
Key takeaways
- Test every drone, battery and light, and ask about crash and repair history.
- Ask who is qualified to fly and whether the company can keep flying after the sale.
- Match serial numbers to receipts, insurance and any financing.
- Plan for replacing ageing equipment.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat camera, lighting and editing gear should I verify when buying a video production company?
- Expert answerWhy does a video production company’s gear rental income matter to a buyer?
- Expert answerWhich production line equipment should I test at a small co-packer?
- Expert answerWhat should I look at in a holiday lighting company’s bucket truck and ladder fleet?
- Expert answerHow do I check a land surveying company’s field equipment condition before buying?
- Expert answerHow do I check a video production company’s insurance for gear and shoots?
Selling
Due diligence
- Expert answerWhat do outstanding final-cut approvals say about a video production company’s cash flow?
- Expert answerWhat should I ask about the AV and video conferencing equipment in a meeting space?
- Expert answerWhat should I ask about a holiday lighting company’s take-down and storage contracts?
- Expert answerHow do I verify a video production company’s equipment ownership and rentals?
- Expert answerHow do I check a video production company’s unbilled projects at closing?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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.