What supplies and vehicles come with a maid service?
Often a stock of cleaning supplies, vacuums and tools, and sometimes branded vehicles, but it varies. Ask for a written list of what is included, who owns each vehicle, and whether any is leased or financed. Do not assume anything is part of the sale unless it is listed.
Ask the seller for an inventory split into equipment, consumables and vehicles. Equipment includes vacuums, steamers and ladders. Consumables are chemicals, cloths and bags that run out and need regular reordering. Vehicles raise their own questions.
For each vehicle, ask who holds the title, whether there is a loan or lease, and what the insurance and maintenance history looks like. Some cleaners drive their own cars, in which case they will not come with the business. Others use a van with the company name on it; check whether the branding or signage is part of the sale.
Also look at how supplies are bought. Do the crews use the same products, and does a supplier give the business a standing arrangement? A concentrated supplier can be a risk if it changes terms, so ask how easily the business could buy elsewhere. Finally, put the list in the purchase agreement. Your lawyer can make sure that what you expect is what you receive, and your accountant can advise on how assets are valued and recorded for the sale. Count the stock on hand near closing day rather than trusting an older figure. Photograph vehicles at handover to record their condition.
Key takeaways
- Get a written list splitting equipment, consumables and vehicles.
- Confirm title, loans or leases and insurance for each vehicle.
- Ask whether cleaners use their own cars or tools, which do not transfer.
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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 CanadaGovernmentWhat is inventory
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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