What should I check before buying a firewood processing business?

Firewood processing is a chain of equipment, supply, storage and timing, and each link can hide a problem. Walk the yard with the owner (the same habits help in the first week after buying), ask how a normal week runs, and ask to see a bad week too.

Equipment and the yard

Inspect the processor, splitter, conveyors, loader and delivery trucks. Ask for service records and what has been replaced recently. Look at the yard itself: drainage, space for drying, and how stock is stacked and rotated. Ask how the owner knows which wood is dry.

Log supply and stock on hand

Ask who supplies the logs, how they are paid for and whether the supply would carry on under a new owner. Count the stock on hand with your own eyes, and decide with your accountant how it is treated as inventory in the deal. Stock changes by the week, so settle when it is counted.

Customers, routes and seasons

Learn who buys: homeowners, resellers, campgrounds or restaurants. Ask which customers reorder every year and which came through one season. Delivery routes, driver time and fuel all affect the margin. Look at monthly cash flow across several years, because the money comes in unevenly and the owner may have been funding the slow months personally.

Buy or set up your own

Buying brings customers, a yard and a working routine. Starting fresh means building trust and sales over time. Neither is the right answer for everyone, and the checks above help you see which fits your own situation.