Facility & Machinery Inspection

January 04, 2026

by a searcher from Western Washington University in Scottsdale, AZ, USA

Hello all! I have a distribution/light manufacturing business close to LOI. The facility & equipment is a cornerstone of company growth. We would like to complete studies on facility integrity, equipment condition, and fair market rent analysis. The real estate is owned by the seller and appears to be an important component in their negotiations. Lease would be NNN. Does anyone have any experience or feedback going through this process? Any recommendations for firms to consider? Anticipated costs?

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Reply by a lender
from Cornell University in Los Angeles, CA, USA

Hi ^redacted‌ - nice to connect with you. Just closed a couple of deals in this space at the end of###-###-#### Some quick checks if you want this for SBA financing: Lenders want the lease to be long enough to support the loan, usually around 10 years, or to include clear renewal options so the business isn’t forced to move mid-loan. They also look closely at rent. If the new rent is higher than what the business has been paying, lenders treat that increase as a real reduction to cash flow. If it’s lower or at market, that can actually help cash flow. This is why a fair market rent check is important.‌ We have a lot experience financing distribution and manufacturing companies via the SBA. If you ever need help talking through a deal, I am happy to help. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you.You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!

Reply by a searcher
in Boston, MA, USA

Similar to Liam's comment, and speaking from experience in my own acquisition: if the machinery is complex, and not machinery you are familiar with, it is critical that you don't cut corners here - even "well-maintained" machinery might have tens of thousands of dollars of maintenance required within the first few years that sneaks up on you after close. Be sure to find someone(s) familiar with your specific equipment, not just machinery in general, who can give you a thorough analysis of the condition and likely future repairs.

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