What should I ask about a dry cleaner’s wastewater and solvent disposal records?
Ask for the disposal records, the names of the haulers and facilities used, and any inspection or incident reports. Then ask a specialist to review them and tell you what is missing before you commit. Treat missing records as a question to answer, not a detail to excuse.
Request the records the seller keeps on solvent purchases, waste removal and wastewater handling. Match the quantities bought against the quantities taken away. A gap could mean waste is going somewhere it should not, or that records are poor.
Ask who collects the waste and where it goes. Ask for the paperwork from those companies and confirm they are still operating. Find out whether any government inspector has visited, and whether any notice, complaint or spill has ever been recorded. Request copies of anything issued.
Look at the building too. Stains, odours, old drains or storage tanks may point to past contamination. A qualified environmental consultant can assess the site, and a lender or insurer may ask for such a review anyway. Finally, ask your lawyer how to protect yourself in the agreement. Questions to raise include who is responsible for past problems and what the seller must disclose. Do not skip this step, because cleanup responsibility can be costly. Ask whether staff have been trained in handling the solvent, and who is responsible when the owner is away. Request any insurance policy that mentions pollution. If the seller is cooperative and open about gaps, that is encouraging. If answers are vague, slow down and bring in your advisers.
Key takeaways
- Compare solvent bought against waste removed.
- Ask for hauler paperwork and any inspection notices.
- Hire an environmental specialist to review the site.
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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?
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