How do booked events and deposits transfer when I buy a party rental company?

A party rental company sells dates months ahead and takes deposits to hold them. When ownership changes, those customers still expect their tent or tables on the day. The booked calendar is also a set of promises to customers, so ask your lawyer who is responsible for them after the sale. Plan for both sides of it before you sign.

The calendar as an asset and an obligation

Ask for the full list of future bookings with dates, items, prices and deposits paid. Each line is a booking, and also stock to have ready and crew to schedule. Compare the list with the inventory, so that two events are not promised the same equipment on the same weekend.

Deposits already taken by the seller

If the seller holds customer deposits, you will deliver the service without receiving that money unless closing deals with it. Ask for deposits to be listed in the purchase agreement and credited to you at closing. Your lawyer and accountant can settle how that is worded and recorded.

Honouring quotes and terms

Customers have quotes and agreements at the seller’s prices. Decide with your lawyer how you will treat them, and review any cancellation terms. Ask your lawyer what the cancellation terms allow if you decide not to honour one. Ask the seller to flag unusual promises, such as discounts agreed by phone.

Telling booked customers

Plan a short, friendly message to booked customers, planners and venues once the sale is certain. Say who they will deal with, that their booking stands, and where to reach you. A joint message from the seller and the buyer tends to reassure people. Our checklist of commercial lease questions covers the warehouse side.