How do I check a nursery’s potting soil and container suppliers before buying?
Ask who supplies the soil mix, pots and trays, what the purchase terms are and how the nursery would cope if a supplier failed. Review a season of invoices for price changes and quality problems, and ask whether the mix is bought or blended on site.
Soil and containers look like routine purchases until a supplier stops delivering in the middle of spring. Ask the seller to name each supplier, explain how long they have worked together and show a season of invoices. Look at how prices have moved, how orders are timed and whether the nursery buys in bulk or as needed. A single supplier for a key item is a risk to discuss.
Quality matters as much as price. Ask whether the mix has caused problems, such as weeds, salts, poor drainage or pests, and how the seller found and fixed them. If the nursery blends its own mix, find out who knows the recipe, where the materials come from and what equipment is needed. If the soil is imported or moved across a border, ask what inspection records exist.
Finally, check the terms. Are there written supply agreements, volume commitments or credit arrangements that could pass to you or bind you? Ask your lawyer to read them. Your accountant can compare the supply costs with the financial statements to confirm that the numbers fit. Ask the seller who the best backup supplier would be and whether they have ever used them.
Key takeaways
- Review a season of supplier invoices for price and delivery trends.
- Ask about any quality problems and how they were solved.
- Identify a backup supplier for the key items.
Related reading
12 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat do a food plant’s ingredient supplier relationships look like when they are healthy?
- Expert answerWhat should I ask about a garden centre’s growers and wholesale plant suppliers?
- Expert answerHow do I find a plant or tree nursery for sale?
- Expert answerDo portable moving containers compete with the moving company I’m buying?
- Expert answerHow does a shipping container sales and rental business make money?
- Expert answerWhat should I check before buying a shipping container sales and rental business?
- GuideBuying a nursery and sod operation in Canada
Due diligence
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?
- 03Business Development Bank of CanadaGovernmentHow to diversify your supply chain
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.