How do I hand off my caterer’s rental equipment and linen vendors?

Vendors hold much of a caterer’s ability to deliver. Start with a simple sheet for each one: what they supply, how far ahead you order, who you speak with, how you are billed and what happens when an order is late or damaged. Note which vendor you use for which kind of event, since some jobs depend on one specific rental house.

Then separate owned equipment from rented items. Walk the storage area with the buyer, tag what belongs to the business and list what sits on loan or on account. If any equipment is financed or leased, find out what the buyer must take over and what must be paid out first. Your lawyer can say how that is handled in the agreement.

Handing over the relationships takes longer than handing over the list. Arrange a call or a visit for each key vendor while you are still the owner. A vendor who hears about the change from you, and meets the new person, is more likely to keep the same service. Be ready to say which accounts are in the company’s name and which are in yours.

Key takeaways

• Build a one-page profile for every rental and linen vendor.
• Separate owned, leased and borrowed equipment before the buyer asks.
• Introduce the buyer to each key vendor before closing.
• Tell vendors about the change yourself and be ready to say which accounts sit in the company’s name and which in yours.