What should I check before buying a deck and fence company?
Check how the firm gets through winter, how many deposits it holds for next season’s jobs, and which workmanship warranties it still carries. Then look at material exposure on fixed quotes, crew retention, subcontractors, the inspection record on each job and how much the owner sells and designs personally.
Deck and fence companies earn most of their income in a few warm months and spend the rest of the year preparing for them. That rhythm shapes every check. A buyer who reads only a year-end statement can miss how thin the winter was or how many customers have already paid for work that is still to be done. Start with the calendar, then move through the job files.
Seasonal cash and deposits
Ask for monthly bank statements across a full cycle and see how the firm paid its people when work slowed. Then ask for a list of deposits taken on next season’s jobs. Deposit rules may differ by province, so ask your lawyer and accountant how deposits should be handled at closing.
Workmanship, permits and materials
Request the terms of workmanship warranties given on past decks and fences, and the record of callbacks. Whether any warranty transfers is for your lawyer. Check that each job file shows the inspection and permit paperwork the job needed. Look at how fixed quotes handled changes in lumber and hardware costs, since a quote written months ago can lose money when prices move.
People and the owner’s role
List the crew leads, how long they have stayed and which people are subcontractors. Ask who sells, who designs and who visits the site. If the owner does all three, consider how the work would continue after the handover. Our guide to buying a residential renovation contractor goes deeper on these questions.
Related reading
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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 CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
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