What should I check before buying an event rental business?
Check the things the business physically runs on and the work already promised: the inventory register and its condition, loss and damage history, trucks and crew, the warehouse, the seasonal pattern and the forward booking calendar. Then ask how much work comes from planner and venue relationships.
An event rental company is a stock of tents, tables, chairs, linens and staging, plus the trucks and people to move them. Its income comes in bursts around weddings, festivals and corporate events. That shape matters when you inspect it. You are checking what the equipment is really like, how the calendar fills, and who sends the work.
Inventory register and condition
Ask for a full register of items, with quantities and age. Then walk the warehouse and compare the list against what is on the shelves. Look at tent fabric, frames, linen wear and staging hardware. Ask how often items are repaired or replaced, and whether any stock is leased or owned by someone else.
Loss, damage, trucks and crew
Request records of lost and damaged items and how they were charged back to customers. Look at each truck’s condition and maintenance, and ask who drives, sets up and takes down. Many companies depend on seasonal crews, so ask how they are found and kept. Also review the insurance history and any claims.
Warehouse, seasonality and the calendar
Read the warehouse lease, since the stock needs a home and moving it is costly. Study monthly activity across several years to see the seasonal swing, and review the forward booking calendar for what is already promised. A thin calendar close to the busy season is worth asking about. Ask how the seller handles quiet months.
Planner and venue relationships
Ask whether repeat work comes from planners, caterers and venues. Ask which ones send the most jobs and whether any rely on the owner personally. For the lease side, see what happens to the commercial lease when you buy a business.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat happens to the commercial lease when I buy a business?
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- Expert answerShould I buy a business through a newly incorporated company?
- Expert answerShould I buy an existing party rental business or start one?
- Expert answerShould I buy an existing event venue or open a new one?
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- Expert answerWhat should I check before buying a photography business?
Selling
Financing
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 is inventory
- 03Business Development Bank of CanadaGovernmentBuying a business? How to protect yourself from potential liabilities
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