What should I check before buying an irrigation company?

An irrigation company earns from two kinds of work: installing new systems and servicing existing ones. The second is steadier. A buyer’s checks should separate them, then look at what the firm still owes its past customers and who actually does the work. This list is different from a lawn care review, because the risk sits in the systems already in the ground.

The service book and one-off installs

Ask for revenue split by installation, spring start-up, fall shut-down and repair, over several seasons. Look at how many customers return each year and how they were won. A company that depends on a few large installs can look strong one year and thin the next. Ask the seller’s accountant to help you read the figures.

Call-backs on systems already installed

Past installations can bring back claims: leaks, failed zones, damaged lawns or work that did not meet a customer’s expectations. Ask for the call-back log, any open complaints and what the company promised in writing. Ask your lawyer to review who is bound by those promises under the purchase agreement.

People, equipment and supplier terms

Ask which technicians hold the trade skills and certificates the work needs, and whether they will stay. Confirm any licences with your lawyer. Walk the vehicles, trenchers, pumps and testing tools with the owner, and ask for the supplier accounts and their terms. Cash flow is seasonal, so plan for the months with little coming in, and read how much cash you need to buy a business.

For retention of customers after a handover, see whether customers stay after a lawn care sale. The BDC due diligence guide covers the general steps.