What should I check before buying a basement waterproofing company?
Start with the warranty book: every past basement the firm still stands behind, and what callbacks have cost. Then check the mix of interior, exterior and crack work, where leads come from, who digs, and what equipment the crews depend on. Leave warranty transfer to your lawyer.
A basement waterproofing company sells a result that has to last for years, so its past work matters as much as its next job. Part of what you would buy is a long tail of promises made to homeowners. The checks below help you see how large that tail is, how well it is managed and what the business needs in people and machines to keep running. Ask for records, not summaries.
The warranty book and callbacks
Ask for a register of past jobs that still carry a warranty, with the type of work, the date and the terms given. Then ask for the callback history: how often customers called, what the crew did and what it cost in labour and materials. A firm that tracks this well can tell you. Whether those promises pass to you is a contract point for your lawyer, and our page on who keeps warranty liability after a trades sale explains the question.
The mix of work and the leads
Interior drainage, exterior excavation and crack repair differ in crew size, equipment and risk. Ask how the revenue divides among them and which has been growing. Then ask where the calls come from: referrals, online search, contractors, insurers or home inspectors. If most leads trace back to the owner’s name, plan for how that reputation carries over to you.
Crews, digging and equipment
Find out who actually does the work. List the crew leads, how long each has stayed and whether any digging is subcontracted. Inspect the excavators, trucks, pumps and tools for age, condition and ownership, and ask what is leased. Our page on worn-out equipment helps you plan for replacement.
Related reading
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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 CanadaGovernmentBuying a business? How to protect yourself from potential liabilities
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
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