Due Diligence Tips For IBA

[Kitdenims]

Hey folks,

I’m meeting with a seller tomorrow to check out their single-bay. What are some great due diligence questions or observations that rookies miss?

Here’s what i know:

- PDQ Laserwah 360 that was installed as a reload 5ish years ago.
- Plenty of tunnel and full service competition, but no touchlesss nearby.
- Owner appears to be pretty active and says they are onsite tweaking things 3 days a week.
- Currently take card and cash.

I’m not really mechanically inclined but i can follow instructions and live 5 minutes away.

Appreciate any tips!

 

[OurTown]

Will the current owner train you and provide some consultation for 6 months? Are repairs currently being performed by the owner or a distributor?

 

[Kitdenims]

Will the current owner train you and provide some consultation for 6 months? Are repairs currently being performed by the owner or a distributor?

Good question. They indicated on the phone they would be glad to consult continuously but I’m cautious to believe that after closing. Is there a contractual way to handle that? Owner does a lot of work but says the pdq distributor 30-minutes away is helpful.

 

[Waxman]

I'd ask for 3 years tax returns to verify income. I'd ask to see the computer interface on the touchfree to get the actual car counts and a breakdown of the packages. I'd go there on an off-peak time and take a buncha pics and post them here for us to look at. We can give advice based on what pics show.