How do I check whether a barbershop’s chairs and clippers belong to the shop or the barbers?
Ask for a written equipment list and compare it with what you see on site. Then check invoices, lease papers and any barber agreements to find out which items belong to the shop, which are leased and which are the barbers’ own. Never assume an item is the shop’s just because it sits in the shop.
Walk the shop with the seller and list every chair, mirror, station, sterilizer and tool. Beside each item, ask who bought it. Clippers and scissors are often personal property, so expect the barbers to take them if they leave. Chairs, by contrast, may be owned, financed or leased, and each case has different consequences for you.
Request purchase invoices and look at the shop’s asset records with your accountant. If an item appears in the books, it is probably the shop’s, but confirm it. Ask whether any equipment secures a loan, because a lender may have a claim that must be cleared before closing.
Read any chair-rental or contractor agreements. They may say who supplies tools and who owns what. Finally, make the list part of the purchase agreement. Name the included items, and ask the seller to confirm in writing that they are free of other claims. Your lawyer can draft this and search for any registered interests. Photograph the list as you go and have the seller initial it, which gives both sides the same record. Where a barber owns tools, ask whether that barber plans to stay, and who will supply replacements if they leave. Surprises here are cheap to prevent and expensive to fix after closing.
Key takeaways
- Make a written list of every item and who paid for it.
- Ask whether any equipment is leased or tied to a loan.
- Put the confirmed list into the purchase agreement.
Related reading
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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?
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