How do I check a hauling company’s gravel, sand and aggregate pickup arrangements?
Ask where each load is picked up, whose site it is, what agreement covers access and loading, and how long the arrangement has run. Then find out how pickups are scheduled and paid, what happens when a site closes or slows down, and which customers depend on them.
Start with the sites. List every pit, yard or supplier the company loads from, and ask who owns each, how access is granted and who decides when trucks go in. Note whether arrangements are written or based on habit. A pickup that depends on a friendly yard manager is only as steady as that person.
Next, look at how the work runs. Ask how trucks are scheduled, how long they wait to load, how loads are weighed and tracked, and how disputes about quantities get settled. Compare a sample of tickets with invoices and payments. Ask your accountant about the margin on each kind of material, since waiting time can quietly eat it.
Then test the risk. Ask what happens if a supplier shuts, raises its rates or changes its hours, and where else the trucks could load. Ask which customers rely on which pickup. Speak with a couple of suppliers, with the seller’s agreement, and ask your lawyer to read any agreements for transfer and ending terms. Seasonal swings are normal, so ask what the slow periods look like.
Key takeaways
- List every pickup site, who owns it and how access is granted.
- Compare load tickets with invoices and payments for a sample of weeks.
- Ask what happens if a supplier closes, raises rates or changes hours.
- Find out which customers depend on which pickup.
Related reading
13 pages on the same subject, grouped by topic.
Buying
- GuideBuying a dump truck and aggregate hauling company in Canada
- Expert answerHow do I find a gravel pit or aggregate business for sale in Canada?
- Expert answerWhat should I ask about a trucking company’s dispatch software and load board access?
- Expert answerWhat should I check about a dental lab’s courier pickups and case turnaround?
Due diligence
- GuideDump truck and aggregate hauling company due diligence
- Expert answerWhat should I ask about a food truck’s commissary kitchen arrangement?
- Expert answerHow can I check a hauling company’s fuel costs and idle time before buying?
- Expert answerHow do I assess a rental yard’s delivery and pickup driver arrangements?
Financing
Selling
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?
- 03Transport CanadaGovernmentMotor carriers, commercial vehicles and drivers
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