What should I check about the stored goods inventory in a moving and storage company?
Remember that the goods in storage mostly belong to customers, not to the company. Check how each item or lot is recorded, that a physical count matches the records, who has paid, and what condition and cover apply. Unclaimed or unpaid goods are the area most likely to hide a problem.
Start with the records. Ask how incoming goods are logged, how each customer’s lot is identified and how removals are signed off. Then ask for a full list of what is in the warehouse today, with the customer, the date stored and the rate. Walk the building with the list and check a good sample against the shelves and containers, not only what is easy to reach.
Next, look at the money tied to the goods. Which customers are paid up, which are behind, and which have not been in contact for a long time? Ask the seller how overdue accounts and abandoned goods are normally handled, and ask your lawyer what steps a new owner could take and what the paperwork should look like. Never assume that unpaid goods can simply be sold.
Finally, check the building and the cover. Look for water damage, pests, shelving strain, and fire and security arrangements. Ask for the insurance policy and the claims history, and whether customers have made claims for loss or damage. A buyer taking over the storage also takes over the care of other people’s property, so ask how the transfer of that duty will work.
Key takeaways
- Walk the warehouse with the customer list and check a real sample.
- Sort accounts into paid, behind and silent, and ask how each is handled.
- Review the building’s condition, security and insurance claims history.
- Ask your lawyer about unclaimed goods before you rely on them.
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Financing
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is inventory
- 02Canadian Association of MoversIndustryCanadian Association of Movers
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 04Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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