What comes with the sale of a cleaning products manufacturer?

In a cleaning products maker, several things cannot be seen on a tour: how each product is made, who buys it and whose name is on the label. Equipment and stock are easy to count. The rest has to be named in the purchase agreement, or the buyer may find that the seller kept a copy or that nobody ever owned it.

Formulas, records and know-how

Ask for every formula, the batch records and the supplier specifications for raw materials. Find out who developed each formula and whether a chemist, contractor or customer has any claim to it. Ask how the know-how is protected, and have your lawyer look at confidentiality terms with staff. The buyer should leave with the full set, not a summary.

Customers, contracts and brands

List the customer accounts and read the private-label contracts, since a brand owner may have a say over a change of ownership. Confirm who owns the product names, label artwork and any website or domain. Where a customer owns its own label design, the maker may be only a supplier. Our page on checking a cleaning company’s contracts shows the habit of reading contracts early.

Equipment, stock and what stays

Walk the floor with an equipment list: mixing vessels, pumps, filling and capping lines, labelling gear and storage. Mark what is leased or financed. Count inventory and packaging, and ask how slow-moving or expired stock will be treated. Agree in writing what the seller keeps, such as cash and personal items. See also what product liability comes with buying a business.