How do I check a glass shop’s glass suppliers before buying?
Check a glass shop’s suppliers by asking who provides raw, tempered and mirror glass, on what account terms, whether those accounts continue under a new owner, how long orders take, how often pieces are remade, and whether the shop relies on one tempering source. Then speak with the main suppliers yourself.
A glass shop is only as dependable as the people who supply its glass. Most shops buy raw sheets, mirror stock and tempered pieces from a few distributors and fabricators, and a change in any of those can stall jobs. Treat your supplier questions as a list of things to verify, not assumptions.
Who supplies what
Ask the seller for a list of suppliers by product: raw glass, mirror, tempered and laminated pieces, hardware and sealants. For each, ask roughly how much is bought, how long the relationship has lasted and whether a second source exists. A shop with one source for a key product has a single point of failure worth discussing before closing.
Account terms and a change of owner
Ask what credit and payment terms the shop has, and whether the supplier has to agree to them again once you own the business. Terms built on the seller’s history may not carry over. Ask your lawyer whether any supply agreement limits transfer. Better still, ask the seller to introduce you to the main suppliers before closing.
Lead times, remakes and tempering
Tempered glass cannot be cut after the fact, so a wrong measurement means a remake and a wait. Ask how long typical orders take, how often pieces arrive late or damaged, and who bears the cost. The shop’s reliance on one tempering plant matters too; the BDC supply-chain article listed below covers the resilience side.
Inventory and breakage
Count what is on the racks and ask what is slow, odd-sized or damaged. Ask how breakage is recorded and how stock is valued in the books. Your accountant can tell you how inventory should be treated in the deal. Compare purchases with sales over a full year to see whether the pattern is stable.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to diversify your supply chain
- 02Business Development Bank of CanadaGovernmentWhat is inventory
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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