What should I ask about a supply yard’s loaders and delivery trucks?
Ask for a list of each loader and truck with its ownership, hours or distance, maintenance record and the work it does every day. A yard that depends on one aging loader has a weak point you should know about.
Begin with ownership. Ask which machines belong to the business, which are financed or leased, and which are owned personally by the seller and may not come with the sale. Match serial numbers to the documents. Ask how fuel, tires and repairs are tracked per machine, so you can see which units cost the most to keep running.
Request maintenance records and downtime history. How often has a loader or truck been out of service in the busy season, what did it cost, and how were deliveries covered? Ask which machine would stop the yard if it failed.
Ask about the people. Who operates each machine, what training and licences do they hold, and will they stay after the sale? Delivery drivers are often the face of the yard to contractors. Have an independent mechanic inspect the main units, and consider an appraiser for the larger ones. Ask what replacement is overdue and how it would be paid for. If the yard is on leased land, check that there is room and access for the equipment under the lease, and have your lawyer read it. Ask about backup plans such as a rental or a neighbouring yard that can lend equipment on short notice.
Key takeaways
- Confirm which machines belong to the business and which to the seller.
- Ask which single machine would stop the yard if it failed.
- Get an independent inspection and learn who operates each unit.
Related reading
12 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat should I check about the bays and yard before buying a heavy truck repair shop?
- Expert answerHow do I check a pet supply store’s regular food delivery customers?
- Expert answerWhat should I check in a truck stop’s brand and fuel-supply agreements before buying?
- Expert answerHow do I find out how a distributor’s delivery trucks and routes are run?
- Expert answerHow do I find a landscape supply yard for sale in Canada?
- Expert answerWhat should I check before buying a landscape supply yard?
Due diligence
- Expert answerHow do delivery truck schedules affect a linen service’s service reliability?
- GuideFuel delivery company due diligence
- Expert answerHow do I check a butcher shop’s regular meat sources and delivery days?
- Expert answerHow do I check a convenience store’s supplier delivery and invoice records?
- Expert answerHow do I check a pizza shop’s busiest delivery radius before buying?
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 CanadaGovernmentEquipment valuation: How to do it
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.