How do I evaluate an event planning company’s vendor network before buying?

Ask for the vendor list from recent events, grouped by type: venues, caterers, florists, rentals, entertainment, audio and visual, transport. For each, see how many events they supported, what rates were agreed and how payment works. Repeat use over time is a better sign than a long list of one-time names.

Find out who holds each relationship. In many planning firms a few staff members, or the owner, have personal ties to key suppliers. Those ties earn preferred dates, discounts and favours during crunch time. Ask which ones are written down in agreements and which are goodwill.

Check how vendors are paid. If the company often pays late, suppliers may be less eager to serve it after a sale. Look at deposits held for upcoming events and unpaid invoices to vendors. Ask whether any vendor is owned by the seller or a relative. Contact several of the main suppliers with the seller’s permission. Ask about reliability, pricing and their plans. Also look at how the firm handles problems when a vendor falls through. Your lawyer can review any exclusive or preferred supplier agreements for transfer terms.

Key takeaways

• Group vendors by type and note repeat use, rates and payment history.
• Separate written agreements from relationships that rest on personal goodwill.
• Call key suppliers, with permission, to learn whether they would stay.
• Ask whether any vendor is owned by the seller or a relative.