What happens to the parts suppliers’ accounts when a garage is sold?

Ask the seller for a list of every parts supplier: what the garage orders, how it pays, the credit limit, any rebate or pricing tier, and delivery arrangements. Some pricing exists because of the seller’s volume or history, and a new owner may not start at the same level. Learn which suppliers you cannot work without, and who the alternatives are.

Be clear about money owed. Unpaid balances on the seller’s accounts should be settled or dealt with in the agreement, so you do not face a surprise bill. Ask for statements. Ask your lawyer and accountant how those payables should be handled at closing. Also check for returns, core charges and warranty credits that are still pending.

Then plan the switch. Introduce yourself to the main suppliers before closing, with the seller’s agreement, and file credit applications so that ordering does not stop on day one. Some suppliers may ask for a guarantee or a deposit at first. Keep the seller’s phone number handy for the first weeks, since the account representative may check with them. Check, too, whether any supplier gives the shop special terms in exchange for exclusive purchasing, and whether that promise ends or follows the sale.

Key takeaways

• List every supplier with credit terms, pricing tiers and delivery routines.
• Get statements and settle balances owed in the agreement.
• Apply for new accounts before closing.
• Check pending returns, core charges and warranty credits.