What should I ask about a boat repair yard’s fuel and chemical storage on site?
Ask what is stored, where, in what containers and for how long, then ask for the records of inspections, spills and waste removal. Walk the site with the seller and look at the ground, drains and tanks. Bring in a specialist if anything buried or aged is on the property.
Start with an inventory of everything the yard keeps on site: fuel, paints, solvents, cleaners, batteries, and used oil. Ask where each sits, how it is contained and who has access. Look at the ground below and around the storage, at drains, and at the water’s edge. Stains or smells deserve a direct question.
Then ask for the records. These include inspection reports, spill logs, waste pick-up receipts and any notices received from authorities. Ask whether any tanks are buried, how old they are and who last checked them. Ask about insurance, and whether a claim has ever been made for a spill.
Finally, think about who carries the risk after the sale. Contamination can outlast the owner, so ask whether an environmental assessment has been done, and consider commissioning one. Your lawyer can advise how responsibility for past problems is dealt with in the contract. Keep the tools and process in mind too: ask how staff are trained to handle products and whether the yard’s procedures are written down. Ask also how the yard deals with runoff from washing and sanding, since that is where problems often hide. Notes on how the yard handles it daily will tell you more than any policy statement does.
Key takeaways
- List every fuel and chemical on site, where it sits and how it is held.
- Ask for inspection, spill and waste-removal records.
- Consider an independent environmental assessment before you commit.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
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