What equipment and supplies come with a cleaning company sale?
Only what the sale agreement lists. Sort every machine, vehicle and stock item into owned, financed, leased or belonging to a client, then count consumables at closing and write the asset list into the agreement. Ask who owns equipment kept at client sites, and check the invoices with your lawyer.
Buyers often assume that a cleaning company sale includes everything they see on the truck and in the storage room. That is rarely the whole story. Some machines belong to clients, some are leased, and some still secure a loan. The way to avoid surprises is to sort every item before you agree on a price and put the result in writing.
Sort owned from everything else
Ask the seller for an equipment list and sort each item: owned outright, financed, leased, or owned by a client. Machines left at client sites are the usual trap, since a floor machine in a client’s building may be theirs. Look at invoices and ask clients, with the seller’s agreement, before you count on it.
Vehicles and financed items
List vehicles with who owns them and whether a lender holds a claim. For a financed machine or van, ask the lender and your lawyer what must happen at closing. Your lawyer can check for claims against the assets, and your lender may want its own review. BDC’s guide to used equipment valuation, in the sources below, is useful reading before you talk to anyone.
Count chemicals and consumables at closing
Chemicals, paper goods, bags and cloths are used every night, so the amount on hand changes constantly. Agree how stock will be counted at closing and who does the counting. Ask about storage and labelling of chemicals, and whether safety data sheets are on hand at each site. Your lawyer can tell you what applies.
Write it into the asset list
Attach a schedule to the agreement naming each item, with serial numbers where there are any. State what is excluded. Walk the list with the seller on closing day and check items against it. The cleaning business buyer checklist can help you cover the rest.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
- ChecklistCleaning business buyer checklist
- Expert answerWhat should I check before buying a trucking company?
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- Expert answerWhat insurance gaps should I check when buying a business?
- Expert answerHow do I check whether a cleaning company’s clients will stay after the sale?
Buying
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Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 04Canada Revenue AgencyGovernmentBuying a business
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