How do I look at a moving company’s storage warehouse and packing supplies?
Walk the warehouse yourself. Check the building’s condition, how stored goods are tracked, whether the space is owned or leased, and how much room is actually in use. Then count the packing supplies and ask how often they are reordered, so you pay only for stock you can use.
Begin with the paperwork on the space. Ask whether the warehouse is owned by the company, owned by the seller personally, or rented, and what the lease allows. If the seller owns it, the sale of the business and the sale of the building are separate questions. Your lawyer can sort out which applies.
Then walk the floor. Look at rack condition, loading doors, fire protection, security and signs of leaks or pests. Ask how customer goods in storage are labelled and logged, and how the company would find a specific client’s items in a hurry. Sloppy tracking is a liability that falls on the new owner. Ask what part of the space is filled with paying storage clients and what part is simply used as a yard or overflow.
For packing supplies, request a count and compare it with the usage the seller describes. Boxes, pads, tape and wrap have little resale value if they are damaged or stale. Ask who the suppliers are and whether any terms transfer. Your accountant can help decide how to treat the stock in the closing adjustments. Visit once more at a busy time, because an empty warehouse on a quiet morning hides how crowded it gets and how well things are organized.
Key takeaways
- Confirm who owns the building before anything else.
- Test how stored goods are tracked and found.
- Count supplies and set aside damaged stock.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I check a moving company’s packing and crating revenue before buying?
- Expert answerHow do I find a warehouse business for sale near me?
- Expert answerCan I buy a self-storage facility with little money down?
- Expert answerWhat should I check before buying a records storage business?
- Expert answerWhat should I check before buying a self-storage franchise location?
- Expert answerHow do I check whether a self-storage facility is actually profitable?
- Expert answerHow do I judge the slow-moving stock in an industrial supply distributor’s warehouse?
Due diligence
- Expert answerHow do I check a moving company’s trucks and booking history before buying?
- Expert answerHow do I check a tire shop’s seasonal storage business before buying?
- Expert answerHow do I check a towing company’s motor club contracts before buying?
- GuideFuel storage tanks and environmental approvals — Newfoundland and Labrador
- ChecklistSelf-storage buyer checklist
- Expert answerWhat should I check about slow-moving specialty paints and papers in an art supply store?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canadian Association of MoversIndustryCanadian Association of Movers
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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.