What should I check before buying a custom cut-and-wrap or game processing shop?
Check how seasonal the bookings are, how the shop takes in, tags and tracks each customer’s meat, how much freezer space it has at the peak, whether hunters and farmers are loyal to the shop or to the owner, and how it finds seasonal help. Handling rules are for your lawyer and the regulator.
In a custom shop the customer brings the animal and takes the meat home. The shop sells labour, skill and trust. That is unlike a plant that buys and sells product. A buyer is purchasing a service business with a very uneven calendar, and a reputation that customers have built up over years of getting their own meat back.
Seasonal bookings
Ask when the shop is busy and when it is quiet. Hunting season may bring a rush in a few weeks, while farm customers book at other times. Ask to see booking records over several years, and ask what the owner does in the slow months. Cash flow in a shop like this is lumpy, so plan for the quiet stretch as well as the peak.
Intake, tagging and tracking
Customers care deeply that they get back their own meat. Ask how animals are received, tagged and followed through cutting, wrapping and storage. Look at the paperwork and any system the shop uses. Ask how mistakes are handled and how often complaints come in. A shop with a clear, careful system is easier to hand over than one that runs on the owner’s memory.
Freezer space, customers and crew
Find out how much cold space the shop has at its busiest, and whether it ever turns work away. Ask who the repeat customers are and whether they follow the owner or the shop. Meet some of them if you can. Ask how seasonal helpers are found and trained. The due diligence guide for meat processing covers licensed plants, which is a different case.
Related reading
14 pages on the same subject, grouped by topic.
Due diligence
Buying
- GuideBuying a meat processing business in Canada
- Expert answerWhat should I do in the first months after buying a butcher shop?
- Expert answerWhat should I do in the first week after buying a business?
- Expert answerWhat should I check before buying a steakhouse?
- GuideBuying a sheep and goat farm in Canada
- Expert answerWhat should I check before buying a halal restaurant?
- Expert answerHow can I check a butcher shop’s sales against its meat purchases?
- Expert answerWhat should I ask about a butcher shop’s freezer-pack and bulk-order customers?
Selling
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
- 02Canadian Food Inspection AgencyGovernmentFood licences
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
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.