How do I tell if a detailing business relies on one fleet or dealer client?

Begin with the invoices. A detailing shop can look busy while a single dealer group supplies most of the work, so ask for a customer-by-customer sales listing and match it to the financial statements. Then ask who the largest accounts are and how long each has been buying. A long history is reassuring; a recent surge is a question mark.

Look next at how the work is won. Is there a signed supply arrangement, or does the dealer simply call when cars need prepping? Verbal habits can end the day a manager changes. Ask the seller to explain how the relationship started and who at the client knows the staff.

Finally, think about the handover. If the seller personally holds the relationship, ask whether they will introduce you and for how long. Your lawyer can show you how to tie that support, and any client-loss protection, into the purchase agreement. Also ask how the work is priced and paid. Large accounts often pay late or push for discounts, which can leave a shop busy but short of cash. Ask whether any other customers could replace that volume, and how quickly the seller has won new accounts in the past. A buyer who can answer these questions is better placed to decide.

Key takeaways

• Request a customer-by-customer sales listing and tie it to the financial statements.
• Find out whether the big client has a written agreement or only habit.
• Ask who holds the relationship and how it will be introduced to you.