What happens to client-owned exhibits in storage when I buy a trade show exhibit company?

Many exhibit companies keep booths that their clients own, and store and refurbish them between shows. Those booths sit in the same warehouse as the company’s own rental exhibits and can look the same. Ask your lawyer whether they pass in the sale. Mixing them up leads to disputes, so separate them early in your review.

An inventory that marks ownership

Ask for a full list of what is in storage, with a clear mark showing whether each item is the company’s or a client’s. Then walk the warehouse and compare the list with what you see. Labels, tags and photographs help. Anything the seller cannot place should be raised with the seller and your lawyer before closing.

Storage and refurbishment agreements

Ask whether each client has a written agreement covering storage, refurbishment and release of the booth. Read what it says about fees, who pays for repairs and what happens if the company changes hands. If there is nothing in writing, learn how it has worked in practice, and ask your lawyer whether to document it.

Unpaid fees, damage and insurance

Check for storage fees clients owe and for any booth that was damaged on site or in the warehouse. Ask the seller how those matters were settled. Review the company’s insurance to see whether it covers goods held for others, and ask your insurance adviser what cover you would want from day one.

Telling clients after closing

Clients with stored booths will want to know who holds them. Plan how and when they hear about the change, ideally with the seller’s help. Your lawyer can say what the transfer does to these arrangements and whether any client needs to agree. See also how to verify inventory and equipment.