How do I prepare my rental yard’s contractor accounts for a change of owner?

Begin with the receivables. Run an aged list and chase anything that is overdue, or decide with your accountant what to do about balances you will not collect. A buyer will read a long tail of old invoices as a sign that credit is loose. Settling it now also removes an argument from the negotiation.

Next, put each contractor’s arrangement on paper. Many yards run on handshakes: a standing discount, a job-site delivery habit, a credit limit raised years ago. Write down what each one gets, so the buyer knows what the relationship really is. Where terms were never agreed, think about whether to confirm them before you go to market.

Then prepare the introductions. Rank accounts by how much they rent and how long they have been with you. Decide who you will tell first, and plan to bring the buyer to meet the largest ones before closing, if the buyer agrees. A contractor who hears about the sale from you, with the new owner beside you, is far more likely to stay. Keep your own records tidy as you go. Note each account’s main contact, preferred pickup times and any job that is still open, so nothing falls between the old owner and the new one in the first busy week.

Key takeaways

• Collect or resolve overdue balances before you go to market.
• Write down every standing discount and credit arrangement.
• Introduce the buyer to your largest accounts in person.