What should I check before buying a raw pet food business?
Check the freezers and how well temperatures are logged, how heavily the business leans on one or two meat suppliers, how the delivery routes work, what recalls or complaints the business has handled, and whether customers reorder on a steady pattern. Send any rules questions to your lawyer.
A raw pet food business sells frozen product, so much of its value to you is in what keeps that product cold, steady and trusted by the people who feed it to their animals. Grooming and boarding businesses work very differently. Here is what a buyer of a frozen pet food business can look at before going further.
Freezers and temperature records
Walk through the freezers and the storage space. Ask how old each unit is, how often it has been serviced and what happens if power fails. Request the temperature logs and see whether they are kept consistently or filled in after the fact. A backup plan for a freezer failure matters more than the brochure suggests.
Meat suppliers and delivery routes
Ask who supplies the meat and bones and how long the relationships have run. A business that depends on one source is exposed if that source changes its terms. Follow a delivery route with the owner or driver, and look at vehicle condition, cold storage on board and how much of the route depends on one person. Our page on checking supplier relationships has more questions to ask.
Recalls, complaints and reorders
Ask whether the business has ever pulled a product, received a customer complaint about a batch or heard from an agency. Request any written records. Then look at reorder history: do customers come back on a regular pattern, and who are the largest accounts?
Rules that apply
A seller’s assurance is not enough for raw animal food. Have your lawyer confirm what permissions the business holds, whether they can be transferred and what must be done before you operate it yourself.
Related reading
14 pages on the same subject, grouped by topic.
Due diligence
Selling
Buying
- Expert answerDoes a share purchase avoid transferring a company’s licences?
- Expert answerHow do I take over a business after closing?
- Expert answerHow do I transfer a food premises licence when buying a restaurant?
- GuideBuying a wholesale bakery or commissary kitchen in Canada
- Expert answerHow do I check a pet supply store’s regular food delivery customers?
- Expert answerHow do I check a pet store’s delivery service for heavy bags of food?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canadian Food Inspection AgencyGovernmentRegulatory oversight of pet food, treats and chews in Canada
- 02Canadian Food Inspection AgencyGovernmentRecall procedure: A guide for food businesses
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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.