What should I check about the bays and yard before buying a heavy truck repair shop?
Walk the building with a tractor-trailer in mind. Check bay length and door clearance, whether bays drive through, pits, yard room to park and turn waiting units, and the wash bay and drainage, then confirm the lease protects all of it. If the building does not suit the work, that limits what the shop can take on.
A heavy truck shop depends on its building. A tractor with a long trailer does not fit where a pickup does, and a shop that turns work away because a unit will not fit has a ceiling on its income. Visit the site on a working day and watch how units move in and out. The page on what to check before buying a muffler and exhaust shop covers a shop’s tools; this one covers the premises.
Bays and doors
Measure the length, width and door clearance of each bay against the units the shop actually services. Ask whether bays drive through or force trucks to back out, since that affects both safety and how quickly work flows. Look at any pits and lifts, and ask when they were last inspected and by whom.
Yard space
Units wait for parts, for approval and for a free bay, and they need somewhere to sit. Check whether the yard can hold them, whether trucks can turn without blocking the road or a neighbour, and whether the surface and lighting suit the work. Ask what happens when the yard fills up and whether the shop has ever turned work away.
Wash bay and drainage
Ask where wash water goes, how oil and fluids are collected, and who has looked at the drainage. Your lawyer can tell you whether a site assessment is wise, and the seller should be willing to share any earlier reports.
Lease terms that protect the building
If the shop is leased, read the lease with the premises in mind: how long it runs, whether you may renew, whether the landlord must consent to a transfer, and who pays for repairs to the building and yard. Have your lawyer review it before you rely on it.
Related reading
14 pages on the same subject, grouped by topic.
Due diligence
Buying
- GuideBuying a heavy truck and trailer repair shop in Canada
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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