What should I check before buying an event planning business?

An event planning business has little to touch. There is no warehouse of stock to count, so what you are buying is a calendar, a set of relationships and a reputation. Those things are easy to claim and harder to confirm. Your job in due diligence is to find out how much of each one belongs to the business and how much walks out the door with the owner. These are the areas to look at first.

Whose clients are they?

Ask how clients find the firm and who they deal with day to day. If most enquiries ask for the owner by name, that is a transition risk to plan for. Look at the share of work that comes from repeat clients and referrals, and ask to speak with a few of them. A short handover period with the owner often helps, and it can be written into the agreement.

Vendors, venues and booked events

Planners depend on florists, caterers, venues and rental companies who know them. Ask which of those relationships are documented and which live in the owner’s phone. Then go through every event already booked: the signed contract, the deposit received, what has been spent on it and what the firm still owes to others. Your lawyer can tell you how deposits and open contracts should be dealt with in the deal.

Team and contractors

Find out who actually runs events on the day. Coordinators may be employees, or they may be contractors who work for several firms and can leave. Meet the key people before closing if the seller allows it, and ask what they have been told about the sale. Our page on what to check before buying an event rental business covers the equipment side, which a pure planning firm may not have.

Reviews, name and online presence

Read the reviews and see whose name appears in them. Confirm the business owns its domain, social accounts and photo library, and that couples and clients agreed to the use of their images. If the brand is tied to the owner’s personal name, ask what will change after the sale and how you will keep the firm’s standing.