What should I ask about a tree lot’s netting, stands and display equipment?
Ask for a list of every item used on the lot, from the netting machine and tree stands to racks, lights and signs. Find out who owns each, what condition it is in and what must be replaced soon. Test the machines yourself and ask for repair records.
Ask the seller to list everything that comes with the sale. Netting machines, drills, saws, stands, racks, shaker, lighting, generators, tents and signs often get left off a list. Walk the storage area and compare what you see with the paper.
Next, test the equipment. Run the netting machine, check the saws and look over the stands for rust, cracks and missing parts. Ask which items are borrowed, rented or owned by a friend of the seller, since those will not come with the business. Ask about age and repairs. Which pieces were replaced recently and which are tired? Request receipts for maintenance and ask what a replacement would cost today. A lot with worn-out stands may need a quick investment before the first weekend. Ask where the equipment is kept in the off-season and whether the storage is included. Items left outside all year wear faster. If you need financing for equipment, speak to a lender early. An appraiser can also put a value on what is worth buying. Your lawyer should make sure the purchase agreement names the equipment you expect. Take photographs of everything on the list during your visit, so the written agreement can be checked later against what you saw on site.
Key takeaways
- Get a written list of every item and walk the storage area.
- Test the netting machine and inspect stands for wear.
- Confirm which items are owned and which are borrowed.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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