How do I check a greenhouse’s heating system and fuel usage records?
Compare the heating equipment with the fuel bills. Ask what type of system heats each house, how old it is, how it has performed in cold snaps, and whether fuel use per season is steady. Large swings in use point to problems with equipment or operations.
Start with the equipment. Ask for the maintenance record on boilers, burners, pipes and controls, and who services them. Walk the system with a technician and look at corrosion, leaks and the condition of fans or circulation. Ask about breakdowns in the coldest weather and what the crop losses were, if any.
Then read the fuel records. Ask for several seasons of fuel invoices alongside production by house. Look for consistency, and ask about any season that stands out. Check whether the fuel is purchased under a supply contract and whether that contract carries over to a new owner. Find out whether tanks and lines are owned or supplied by the vendor. Ask about efficiency measures: curtains, insulation, controls and any heat recovery. Ask what the seller would upgrade given the chance. Your accountant can help you compare current energy costs with a possible upgrade, and a qualified technician should judge the equipment itself. Do not rely on the seller’s opinion of its remaining life. Keep your own notes from the walk-through and ask the seller to respond to each one in writing. This turns scattered impressions into a concrete list, which is easier to price, to negotiate and to fix after the sale closes.
Key takeaways
- Match fuel invoices across several seasons to production in each house.
- Ask how the system performed in the coldest weather and what failed.
- Confirm who owns tanks and lines, and whether the fuel contract transfers.
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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 conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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