What should I check before buying a bottle depot?

A bottle depot takes in returned containers from the public, counts and sorts them, and passes them on to the collection system in its area, which varies by province. The work is steady and physical, and it depends on a site that customers can reach easily. The checks below are about how the depot really runs. They do not set a price, which is a question for your accountant and advisers.

Volume and the records behind it

Ask for container volumes by month across more than one year, and note the busy and slow seasons. Ask how volumes are counted and how they tie to what the depot is paid. Have your accountant compare the volume records with the books. If volumes have moved, ask the owner why, and test the answer against what you see on site.

The lease and the site

Customers arrive in cars and trucks with full loads, so parking, access and drop-off flow matter, as does room to store containers until pickup. Read the lease for its term, renewal rights and whether the landlord must consent to a change of owner. A BDC guide to lease terms helps you prepare questions for your lawyer.

Equipment, staff and pickups

Ask for a list of counting and sorting equipment, its age and its repair history. Find out how many people work each shift, how long they have been there and how much the owner does personally. Ask how pickups are arranged, how reliable they are and what happens when storage fills up.

Customers and reputation

Visit at a busy time and watch the line. Look at online reviews and ask about complaints and how they were handled. Regular customers, charities and community groups that use the depot may be worth meeting.

What to hand to your lawyer

Whether the depot’s permit or agreement moves with a sale, and how the depot is paid for each container, are legal and regulatory questions. Ask your lawyer and read the documents yourself.