What should I ask about a roofing company’s relationship with its shingle supplier?
Ask who supplies the shingles, how long the relationship has lasted, and what terms the company gets on price, credit and delivery. Find out whether the pricing is written down, whether it depends on the current owner, and what happens if the supplier changes its mind.
Begin with the basics. Which supplier does the company use for most jobs, and are there backups? Ask for recent invoices and any written price lists. Then ask about credit: does the company pay on delivery, or does the supplier extend terms? A supplier that has been generous to the current owner may want to reassess a new one.
Next, ask about warranty support. Roofing jobs bring manufacturer warranties, and some depend on the contractor being certified or approved by the supplier. Ask whether that status belongs to the company or to the owner personally, and what must happen for a buyer to keep it. The supplier can answer this directly.
Finally, ask how deliveries work in a busy season. Do trucks arrive on time to the job site, and how are mix-ups handled? A call to the supplier’s rep, with the seller’s permission, tells you far more than a summary. Your lawyer can help make any key supplier terms part of the closing conditions. Ask whether the company has ever switched suppliers and why. The answer shows how flexible the business is and how much negotiating power the owner has used. Write down what you learn so your lawyer can reflect any important terms in the closing documents and conditions.
Key takeaways
- Ask for invoices, written pricing and credit terms.
- Find out whether warranty status stays with the company or the owner.
- Speak to the supplier’s rep, with the seller’s permission.
Related reading
15 pages on the same subject, grouped by topic.
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Due diligence
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Selling
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 CanadaGovernmentHow to diversify your supply chain
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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