How are live animals handled when a pet store is sold?
Ask your lawyer whether the agreement sets out how the animals are counted and health-checked at closing, who bears any loss before and after that point, and who keeps the care routines going. The tanks, habitats and livestock suppliers are part of the handover too, not only the animals themselves.
Selling a pet store is unlike selling a shop with shelves of boxed goods, because part of the inventory is alive and changes every day. Animals get sick, grow, sell and die between the day the parties agree and the day they close. Planning the handover of the livestock early protects the animals and keeps the two sides from arguing about losses later.
Counting and checking at closing
Livestock cannot be counted once and forgotten. Many parties do a joint walk-through just before closing, counting fish and small animals by tank or enclosure and noting visible health. A written record, signed by both sides, gives you a shared starting point. Ask whether a veterinarian or an experienced staff member should look at any animal that seems unwell.
Who owns the losses
Decide in the agreement who bears the cost if animals die or fall ill before closing and who bears it afterward. Ask your lawyer to set out the point at which risk passes to you, and whether any adjustment follows a bad count. Silence on this point invites a dispute at the worst moment, when the new owner is still learning the shop.
Care routines, staff and habitats
Feeding, water testing, quarantine and cleaning routines often live in the heads of a few employees. Ask who knows them and whether those staff will stay. Check the tanks, filters, heaters and enclosures too, since failed equipment can lose animals overnight. Written routines help a new owner and new staff.
Livestock suppliers
Fish, birds and small animals come from specialized suppliers with their own accounts and delivery schedules. Ask which suppliers matter, whether the accounts transfer and how quickly stock arrives. Which animals may be sold, and how, is a legal question for a lawyer. See the buyer’s transition checklist.
Related reading
15 pages on the same subject, grouped by topic.
Selling
Buying
- GuideBuying a pet supply store in Canada
- Expert answerHow do I set up new supplier accounts after buying a business?
- GuideBuying a greenhouse floriculture operation in Canada
- GuideBuying a dollar store in Canada
- GuideBuying a bike shop in Canada
- GuideBuying a thrift and consignment store in Canada
- Expert answerShould I buy an aquarium store or start one?
Due diligence
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
- 02Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 03Business Development Bank of CanadaGovernmentWhat is inventory
- 04Canadian Food Inspection AgencyGovernmentProvincial and territorial traceability and premises identification programs
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