What should I check before buying an awning business?

An awning business makes and installs a custom product, so much of its value sits in skilled people and steady supplier relationships. Your checks should focus on whether those can be kept once the owner leaves. Ask for records rather than descriptions, and speak with the key staff if the seller agrees. The points below cover the areas that tend to matter most for this kind of shop.

Skills, suppliers and equipment

Find out who does the sewing, who welds and bends the frames, and who measures on site. If one or two people hold all of those skills, ask whether they would stay. Check the main fabric and frame suppliers, how long the shop has bought from them and whether terms depend on the owner. Look over the machines and install equipment, and ask for service records.

Customers and the order book

Ask for sales split between commercial work and residential work, and a list of repeat accounts such as restaurants, shopping centres and property managers. Awning demand often follows the seasons, so look at the backlog across a full year and what happens in the quiet months. A large order book is helpful, but ask what deposits have been taken for work not yet delivered.

Crews, claims and the lease

Installation crews work at height, so ask how they are trained, whether they are employees or contractors, and whether the shop has had accidents or insurance claims. Request the history of warranty and storm-damage claims and how each was resolved. Read the shop lease for its term, renewal and whether the landlord must agree to a new tenant. Whether installations need approvals from anyone else is a question for your lawyer.