What should I check before buying an independent junk removal business?
Check the trucks and trailers, where the leads come from, how and where the loads are disposed of, whether the crew is stable, and how much of the booking depends on the owner’s own phone. An independent operator has no brand to lean on, so the reviews, accounts and routines are what you are really buying.
Junk removal looks simple: a truck, a crew and a phone. An independent operator, unlike a franchise, has no head office, brand fund or system behind it. What transfers is whatever the owner built, and a lot of that may live in the owner’s habits. Your diligence should find out which parts can be handed to someone else.
Inspect the trucks and trailers
Get the list of vehicles and trailers with age, condition, repair history and who holds the ownership papers or the financing. Have a mechanic look at the main truck.
Trace where the leads come from
Ask for a breakdown of jobs by source: website, online reviews, property managers, realtors, referrals and repeat customers. Check whether the website, phone number and review profiles belong to the business or to the owner personally. Reviews and search rankings are assets only if they come across with the sale.
Ask about disposal
Where loads go matters for cost, reputation and compliance. Ask which sites, recyclers and donation partners the business uses, whether it has accounts with them, and how it handles items that need special handling. Your lawyer can tell you what permits and obligations apply to the business you are looking at.
Look at the crew and the owner’s role
Ask who takes the calls, gives the quotes and leads the crews. If the owner does most of it, ask what a buyer would do on day one. Meet the crew leads, and ask what they have been told. A conditional offer can give you time to test these answers.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a snow removal company in Canada
- Expert answerDo portable moving containers compete with the moving company I’m buying?
- Expert answerHow do I check a moving company’s packing and crating revenue before buying?
- Expert answerWhat should I check before buying a horse boarding stable?
- Expert answerWhat should I check before buying a dumpster rental business?
Due diligence
Financing
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 are the steps to buying a business?
- 03Government of Ontario — Ministry of the Environment, Conservation and ParksGovernmentEnvironmental Permissions for Waste Transportation Systems
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