What should I check before buying a Christmas light installation business?
Check the returning customer list first, then who owns the lights (company rentals or customer property), how each home’s set is stored and labelled, how the seasonal crew is rehired, the ladder and roof insurance and claims history, and what the business earns outside the season.
A holiday lighting company does most of its work in a short window, then spends months waiting for the next one. That shape changes what you look at. A farm or a shop shows its health every day. An installer shows it in two busy stretches, putting lights up and taking them down. Ask the seller to walk you through one full season, from the first booking to the last takedown.
The customer list and who returns
Ask for the list of customers by season, with notes on who came back and who did not. A list of homes that rebook each year is a very different asset from a list of one-time jobs. Ask how rebooking works: does the company contact people, or do they call? Ask whether any large accounts, such as property managers or commercial buildings, depend on one person.
Who owns the lights
Some companies install lights they own and rent to the customer. Others install the customer’s own sets. Ask which applies to each account, and ask to see the inventory. Check how every home’s set is stored, labelled and tracked between seasons. Mixed-up sets cause callbacks. Your lawyer can tell you how rented inventory is handled in the purchase agreement.
Crews, ladders and insurance
Seasonal crews must be found and trained again each year. Ask who leads them, how many return and what training they get for roof and ladder work. Ask for the insurance policies and the claims history, including any injury or property damage. Your insurance broker can explain what the cover includes and whether it continues after a sale.
The rest of the year
Find out what the business does outside the season. Some owners run a landscaping, window cleaning or exterior service alongside it, and the lighting may be a side line. Our page on what to check before buying an independent junk removal business shows how to question a service business built on trucks and crews. Ask which staff, vehicles and storage space are shared.
Related reading
13 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat should I check before buying a Christmas tree farm?
- Expert answerWhat should I check before buying an independent junk removal business?
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- Expert answerHow do I check what a junk removal business really earns?
- Expert answerHow do tree service companies price their jobs?
- Expert answerHow do I tell whether a vehicle wrap shop’s profits will last after a sale?
- GuideBuying a snow removal company in Canada
- Expert answerWhat equipment should I check on a garage door company’s installation trucks?
Due diligence
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 CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
- 04Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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