How do I prepare a document destruction company for sale?
Separate your scheduled bin and console accounts from one-off purge work, organise chain-of-custody logs and certificates of destruction, gather truck and shredder maintenance files, document the arrangement for selling recovered paper, and keep staff screening records together. A buyer will want proof the work is done the same way every time.
A shredding company handles clients’ confidential material. Clients hand over sensitive paper and expect proof it was destroyed. A buyer will look for that proof in your files, so the most useful preparation is getting the records in order. If you have already read our pages on what a buyer checks, think of this as the same list seen from the owner’s side.
Show which work repeats
Split your revenue story into scheduled work, such as bins and consoles collected on a route, and one-off purges. Show the two separately, because routes are scheduled and purges depend on a client’s clean-out. Be ready to explain how long accounts have stayed and which ones are under written agreements.
Custody logs and certificates
Gather the chain-of-custody records and the certificates of destruction you have issued, and show how they are stored and how a client can request a copy. A tidy archive shows the process works. Ask your lawyer how long clients or you should expect to keep them.
Trucks, shredders and recovered paper
Collect maintenance files for each truck and shredder, along with any inspection reports and records of repairs and downtime. Write down who buys your recovered paper, how pickups are arranged and whether that arrangement is in writing. A buyer will ask whether it carries over. Our page on assessing equipment condition shows what a buyer’s inspector may look at.
Staff and security
- Staff screening records, kept securely and shared only as your lawyer advises.
- Training notes and written procedures for handling client material.
- Access controls at the plant and on the vehicles.
- Any incident or complaint record and how each was resolved.
Related reading
12 pages on the same subject, grouped by topic.
Due diligence
- Expert answerHow do I assess equipment condition before buying?
- Expert answerWhat insurance history should I review before buying?
- Expert answerWhat financial records should I ask a seller for?
- Expert answerHow do I verify a seller’s financial statements?
- Expert answerHow do I verify a business’s cash sales?
- Expert answerHow do I check whether a business actually makes money?
Legal
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Office of the Privacy Commissioner of CanadaRegulatorPIPEDA Fair Information Principle 7 – Safeguards
- 02Office of the Privacy Commissioner of CanadaRegulatorPIPEDA Fair Information Principle 5 – Limiting Use, Disclosure, and Retention
- 03Canada Revenue AgencyGovernmentWhere to keep your records, for how long and how to request the permission to destroy them early
- 04Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
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