What happens to a catering company’s booked events when it is sold?

Ask the seller for a list of every booked event: date, venue, guest count, menu, price, deposit paid and balance due. Check each customer agreement to see whether it can be transferred and whether the customer must agree. Your lawyer should confirm how the deal handles each one.

Money comes next. Deposits already received belong to a future service, so ask where that cash is and whether it will pass to you with the obligation to deliver. If the seller has spent it, the closing adjustment should say so clearly. Your accountant can help you work out the adjustment.

Think about delivery. Check whether the kitchen, vehicles, staff and suppliers needed for those events will be in place on closing. Ask about allergen records, special diets and any venue relationships tied to the seller personally. Finally, tell customers. A short call explaining who is running the kitchen, and that the menu and date stand, protects trust. Food safety matters too, so ask what licences and inspection records the business relies on and who will hold them. Ask what the seller has promised informally, such as a favourite dish, a repeat discount or a particular chef. Small promises matter to customers at an event, and if nobody writes them down, the new owner will not know to keep them.

Key takeaways

• List every event with deposit, balance and special terms.
• Agree in writing who holds the deposits after closing.
• Tell customers early that the menu and date stand.