What should I check before buying a landscape supply yard?
Check the site first, then the trucks, then the customers. A yard needs room for stockpiles, loaders and a scale, so confirm the lease or ownership. Ask for truck and maintenance records, the contractor accounts and their terms, and how stockpiles are counted. Leave permits and zoning to your lawyer.
A bulk materials yard looks simple from the road: piles of stone and soil, a loader and a few trucks. Underneath, the business depends on the land it sits on, the equipment that moves the material and the contractors who keep coming back. Garden centres and building supply dealers have their own checklists, but this one is built around the yard itself.
The site and the space
Ask whether the seller owns the land or leases it, and read the lease for its remaining term, renewal rights and any limit on the use of the property. Walk the site. Is there room to stockpile, turn a truck and keep products apart? Is the scale accurate and recently checked? Permits and zoning are the lawyer’s job, so ask early and let them confirm what carries over.
Trucks, loaders and the people who run them
Request a list of every truck and machine with its age, condition and service history. Ask whether the trucks are owned or financed, and who drives them. BDC’s guide to equipment valuation explains how equipment is assessed, a question to raise with your advisers. Find out which employees you would need to keep.
Contractor accounts and credit
Many yards sell to contractors on account. Ask for a list of those accounts, how long each has been a customer and what payment terms apply. See how much is owing and how old it is. Ask whether the biggest accounts would stay with a new owner, and whether any rely on a personal relationship with the seller.
Seasons and stockpile counts
Sales may rise and fall with the building and gardening seasons, so ask to see a full year of monthly records. Agree in writing how the stockpiles will be counted at closing, who does the measuring and how disputes are settled. BDC explains inventory, which helps when reading the seller’s books.
Our garden centre due diligence guide covers the retail side, which some yards also run.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat should I check before buying a paving company?
- Expert answerWhat should I check before buying a sawmill business?
- Expert answerWhat should I check before buying a countertop fabrication business?
- Expert answerHow do I find a landscape supply yard for sale in Canada?
- Expert answerHow can I tell if a paint and sip business is profitable before buying?
- ComparisonBuying a service business vs a product business
- Expert answerWhat should I check before buying a topsoil and mulch business?
- Expert answerHow do I find a safety supply business for sale?
- Expert answerHow do I check a builder’s line of credit with building supply yards?
Selling
Due diligence
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 is inventory
- 04Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.