If the route is owner-operated, you're stepping into the seller's labor role. If it has employees or 1099 techs, you're inheriting a team, and a set of risks.
Owner-operated routes. Your diligence is on yourself: can you physically and mentally do this for the next 3–5 years? A 200-stop solo route is 50–55 hours/week of physical work, year-round. Many buyers underestimate the toll. Plan: ride-along an entire week before LOI, not just one day.
Routes with one tech. Interview the tech privately, with the seller's permission. Topics: how long have you worked here, how do you feel about a transition, what's your pay structure, are you W-2 or 1099, do you have a non-compete or non-solicit, would you stay under new ownership? A tech who'll quit at handover takes 10–30% of the route with them within 90 days. This is a deal-killer unless priced in.
Routes with multiple techs. Same questions to each plus: who's the lead, how does training happen, what's the pay structure variance across techs, who handles complaints when the owner isn't around. Look for documented SOPs vs. tribal knowledge.
Misclassification risk. Many small route operators classify techs as 1099 when they should be W-2. Inheriting that exposure is a real liability, the IRS and state labor boards can come back 3+ years for unpaid taxes, penalties, and worker's comp premiums. Check: do techs work only for this company, set their own hours, provide their own equipment? If "no" to all three, they're probably W-2. Indemnification language in the APA should protect you, but don't buy a misclassification time bomb.
Comp stack. Get a written breakdown of every tech's pay (base, commission, bonuses, benefits). Compare to local market rates. Underpaid techs leave at the first opportunity; overpaid techs are a margin drag you'll need to address.