How do I get a landscape supply yard ready to sell?
Prepare the paperwork a buyer will ask for: an equipment and truck list, contractor account records and the yard lease. Agree in writing how stockpiles will be counted at closing, and plan the timing around your busy season. Ask any broker whom they act for, and what they will do for you.
Selling a yard is easier when the buyer can see how it runs without you in the cab. Most of the work happens before anyone calls: gathering records, tidying the site and deciding what is included. The steps below suit a bulk materials yard, which sells soil, stone and mulch to contractors. They differ from a landscaping crew or a plant nursery.
Gather the records buyers ask for
Make a list of every truck, loader, screen and scale, with age, condition and service history, and say which are owned and which are financed. Pull together the contractor accounts, how long each has been a customer and what terms they have. Have the lease ready if you rent the land. Your accountant can help present the statements clearly.
Decide how stockpiles will be counted
Stockpiles change from day to day, and an argument over them can sour a closing. Agree with the buyer in writing how the piles will be measured, by whom and on which date, and how a disagreement will be settled. Your lawyer should put this in the agreement. BDC’s inventory article is a plain primer.
Time the sale around the season
Keep records of the busy season, since buyers will ask about it and about timing. Ask your adviser whether the quiet months, when you have time to answer questions, suit a sale timeline. Keep serving customers throughout, because a drop in service during a sale is easy for buyers to notice.
Choose who helps you sell
If you use a broker, ask whom they act for, how they are paid and what they will do on your behalf. A broker is one option for reaching buyers. BDC’s advice on negotiating a sale covers the conversation that follows.
Related reading
15 pages on the same subject, grouped by topic.
Selling
Buying
- Expert answerWhat should I check before buying a landscape supply yard?
- ComparisonBuying a service business vs a product business
- Expert answerHow do I check a builder’s line of credit with building supply yards?
- Expert answerHow do I check a landscape supply yard’s gravel, soil and mulch stock counts?
- Expert answerWhat should I look at in a supply yard’s bins, scales and site layout?
Tax
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 02Business Development Bank of CanadaGovernmentWhat is inventory
- 03Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 04Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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