What should I check before buying a paint store?

A paint store is not a painting contractor. It sells product, colour matching and advice, and its value to customers rests on a few things a buyer cannot see from the street: the right to sell a brand, the machines that mix the colours, and the records that let staff match a shade from years ago. Each is worth checking before you go further.

The brand or dealer agreement

Many paint stores sell under an agreement with one manufacturer or banner. Ask to read it. Find out how long it runs, whether it passes to a buyer automatically, and whether the manufacturer must approve you. Ask what the store must buy, display or promote under it. If the store sells several brands, check each one separately, since the terms can differ.

Tinting equipment

Tinting machines, shakers and colour-matching tools are central to the business. Ask whether the store owns them or leases them from a supplier, and what the lease says if the store is sold. Ask about service history and who maintains them. Equipment that belongs to a supplier may need to be replaced or renegotiated, and the cost belongs in your plan.

Colour records and contractor accounts

Ask whether the formula records, customer colour files and matching data are part of the sale and in what form they are kept. These files show what repeat customers bought, which lets a buyer match colours again. For contractor accounts, ask who buys on credit, how much is owed and whether those customers are likely to stay with a new owner.

Aged and custom-tinted stock

Paint does not last forever, and a tinted can often cannot be returned or resold. Walk the shelves with the seller and ask how old the stock is, what is returnable and how the count will be handled at closing. Ask your accountant how to treat stock that may not sell. The guide on supplier relationships covers the questions to put to suppliers.