What should I check before buying a phone repair shop?
Before buying a phone repair shop, check who actually does the bench repairs and whether they will stay, where the parts come from and on what terms, how repair warranties are handled, and how customer devices and the data on them are protected. Then confirm what the seller’s records can prove.
A phone repair shop looks simple from the counter: a customer hands over a cracked screen and collects it later. Behind the counter sit skills, supplier accounts and promises to customers that all have to carry over to you. A shop that depends on one person’s hands, or on parts nobody can trace, is a different purchase from one with documented routines. Start with these four areas.
Who does the repairs
Ask who repairs the devices, how long they have done it, and what training or certifications they hold. If the seller works the bench alone, the skill may leave when the seller does. Ask whether the technicians will stay, and whether the seller will train you or a new hire. This page on keeping technicians after a shop sale covers a similar worry in another trade.
Parts, suppliers and quality
Ask which suppliers the shop uses, whether the accounts can move to you, and whether any terms depend on the seller personally. Ask how the shop chooses between original, refurbished and aftermarket parts, and how it deals with a bad batch. Look at the parts on hand and ask how old they are, since stock for older models can sit unsold for a long time.
Warranty work and customer devices
Most repair shops promise their work for a period. Ask for the written terms, the record of returned repairs, and who pays for a redo. Also ask how the shop stores devices overnight and what it does with the personal data on them. Ask your lawyer how a sale affects that data.
What the records should show
- Repair tickets that show the type of repair, the date and the technician.
- A split between walk-in repairs and any business or contract work.
- Supplier invoices that match the parts the tickets say were used.
- A list of tools, test equipment and any leased items.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying an electronics retailer in Canada
- Expert answerWill the technicians stay after I buy an auto repair shop?
- Expert answerHow do I check hoists and shop equipment before buying an auto repair shop?
- Expert answerDoes a seller have to fix things before closing a business sale?
- Expert answerShould I keep the business name or rebrand after buying?
- Expert answerFranchised or independent auto repair shop: what changes for a buyer?
- Expert answerHow do I find a cell phone store for sale near me?
- Expert answerHow do I compare cell phone store franchise opportunities?
Due diligence
Selling
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
- 02Office of the Privacy Commissioner of CanadaGovernmentThe Personal Information Protection and Electronic Documents Act (PIPEDA)
- 03Business Development Bank of CanadaGovernmentWhat is inventory
- 04Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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