What should I check before buying a gift basket business?

A gift basket company sells assembled orders, often to businesses that reorder every year, and much of its calendar is squeezed into a few busy weeks. That makes it different from a walk-in gift shop, where the stock on the shelves is most of the story. Your checks should follow the orders: who places them, when, and what it takes to fill them well.

Corporate accounts and repeat orders

Ask for a list of customers by type, with how long each has ordered and whether orders are placed by one contact or through a purchasing process. A client who buys because of a friendship with the owner may not stay. With the seller’s permission, speak to a few of the larger accounts before you close, and ask what they would need to see from a new owner.

Seasonal peaks and perishable stock

Look at sales month by month across several years, so you see how much arrives in the holiday rush and how the quiet months are covered. Ask which components spoil, how far ahead they are bought, and how unsold food is handled. Your accountant can tell you how the books treat stock that is thrown out, which affects how you read the margins.

Suppliers, couriers and the owner’s role

Find out which suppliers provide the baskets, ribbon and food items, whether any pricing is in writing, and whether a second source exists. Read the courier arrangements and ask how damaged or late deliveries are handled. Then ask who designs the baskets and who answers corporate clients, and whether that person plans to stay for a handover period. See also what to check before buying a gift shop for the retail side.