How do I check what materials and spray equipment an insulation contractor owns?
Ask for an equipment list, then walk the shop and yard and match each item to it. Look at serial numbers, condition and maintenance logs, and check whether any machine is financed or leased. Count the chemical stock separately and note its storage and shelf life.
Start with a written list from the seller: spray rigs, trailers, hoses, compressors, generators, vehicles and tools, each with a serial number. Walk the shop and match what you see to the list. Ask to watch a rig run, since a machine that looks fine in a yard may struggle under load. Request maintenance logs and ask who services the equipment.
Then ask about ownership. A rig on the list may be leased, financed or pledged to a lender. Ask for the loan and lease papers, and have your lawyer run the searches that show whether anyone has a claim on the equipment. Your accountant can also match the list to the fixed asset schedule in the statements.
Materials need their own look. Spray foam chemicals have storage needs and a limited shelf life, so check dates, temperatures and the condition of the drums. Ask how stock is counted at closing. An appraiser can help set a fair figure for the used equipment, and your lender may ask for that. Ask what is included in the sale and what the owner plans to keep. Tools often vanish between a walk-through and closing, so agree the list in writing and check it again just before you take over.
Key takeaways
- Match every listed item to a serial number you can see.
- Ask for lease and loan papers and have your lawyer search for claims.
- Count chemical stock separately and check dates and storage.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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