How do I learn whether a security company’s guards hold the right training records?
Ask for a roster of every guard and sample the personnel files against it. Check that each file shows the credentials and training the company says it requires, that the dates are current, and that someone is responsible for tracking renewals. Ask who confirms the requirements.
Begin with a complete list of guards, including part-time and on-call staff, and who each works for. Do not choose the files to review from the top of a pile; choose names from the roster and ask for those. Look for the credentials and training the company says guards need, certificate dates, and signed acknowledgements of post orders. Missing or out-of-date records are not necessarily fatal, but you need to know how widespread they are. Then ask about the system. Who tracks expiries? Is there a calendar or a report, or does it live in one supervisor’s memory? What happens when a guard’s credential lapses? Ask how clients check compliance and whether any have raised concerns or audited the files.
Be clear about the limits of your own review. The rules for guard credentials are set outside the company and may change, so ask your lawyer or the regulator what a compliant file looks like and what the seller must disclose. Make accuracy of the records a condition in the purchase agreement. Ask what the seller would do if a sampled file turned out to be incomplete, and note whether the response is open or defensive.
Key takeaways
- Pick names from the roster yourself and ask for those files.
- Find out who tracks renewals and what happens when something lapses.
- Ask your lawyer to confirm what the requirements are and to build the findings into the agreement.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
Buying
- Expert answerHow do I learn about buying a small business, and where do I start?
- Expert answerHow do I learn a convenience store’s ordering routine before I take over?
- Expert answerHow do I learn the early baking schedule before taking over a bakery?
- Expert answerHow does a butcher shop hold its customers against supermarkets?
- Expert answerWhat should I hold back from a buyer until they make a real offer?
- Expert answerDoes a security guard agency licence transfer when you buy a security company in Ontario?
- Expert answerHow can I tell if a security guard company is actually profitable?
- Expert answerHow do I keep guards and clients after buying a security guard company?
- Expert answerShould I buy an existing security guard company or start one?
- Expert answerWhat booking systems does a travel agency use that I need to learn?
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 reduce employee turnover
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.