What should I check before buying a hydrovac business?
Look at the trucks and the hours on their vacuum and water systems, how the business disposes of spoil and on what arrangement, the mix of utility, municipal and contractor customers, and whether the operators will stay. Hydrovac work is truck-heavy and seasonal, so the records matter as much as the machines.
Hydrovac trucks dig with pressurized water and a powerful vacuum, and the business that runs them is part trucking company, part excavation support. That mix shapes what a buyer should examine. The trucks wear in unusual ways, the waste has to go somewhere, and the work follows construction and weather. Here is what many buyers ask for before they commit.
Inspect the trucks, not only the chassis
A hydrovac unit has a truck, a debris tank, a vacuum blower, a water tank and pumps. Each has its own hours and its own failure points. Ask for service records for the truck and for the vacuum and water systems separately, and have a mechanic who knows these units look at them. Confirm the seller owns each truck outright, or find out who is owed money on it.
Ask where the spoil goes
Every job produces wet material that must be taken away. Ask how the business disposes of it, whether it uses its own site or pays others, and whether that arrangement is in writing and will carry over to you. Rules on waste are set by governments, so your lawyer should review the arrangement, and a regulator can confirm what applies.
Understand the customers and the seasons
Utility companies, municipalities and contractors buy hydrovac work differently. Some give steady, repeat work and others call when a project starts. Ask for the mix, how long each customer has been with the company, and whether any one of them is a large share of the work. Ask how winter affects the schedule and how the business covers slow weeks.
Keep the operators in mind
Experienced operators are hard to replace, and customers often ask for them by name. Find out how long they have stayed, how they are paid and whether any plan to leave. Your accountant can help you read the revenue by customer and by truck. Our page on checking for liens on business assets explains how to confirm the fleet is free of claims.
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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 CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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