How can I check whether a handyman company's tools are owned or the workers' own?

Walk through the workshop and the vehicles with the seller. Make a list, item by item, and mark each as owned by the business or brought by a worker. Do not accept general statements such as the crew has everything it needs. Do this item by item, with the seller standing beside you.

Check the paper trail. Business-owned items should appear in purchase records and in the accountant’s asset list. If a tool is on the shelf but not in the records, ask where it came from. Also look for loans or leases secured on equipment. Ask whether tools were ever lost or stolen and who replaced them, since that tells you how the arrangement works in practice.

Then think about continuity. If workers supply their own tools, ask whether they will stay and whether you would need to buy or replace them. Some workers expect a tool allowance. Ask what has been paid in the past. Finally, reflect the list in the purchase agreement. Your lawyer can include a schedule of assets so that what you thought you were buying is clearly stated. Take photographs of the equipment as you list it, so that the final schedule is easy to confirm.

Key takeaways

• List every tool and mark whether the business or a worker owns it.
• Match the list against receipts, asset records and any financing.
• Put the final asset list into the purchase agreement.
• Check for loans or leases secured on any equipment.