What should I check before buying a packaged ice business?

Bagged ice looks simple, but the business is really machinery, cold storage and a delivery route. Sales rise in hot weather and fall away in cold, and the equipment has to run reliably when demand peaks. A buyer should look at what makes the ice, what stores it, who sells it and how it gets there. The checks below follow that chain.

Ice machines and baggers

Ask for the make, age and service history of every ice machine and bagger, and who maintains them. Ask what a breakdown in peak season has cost the business before. Have a technician you trust look at the equipment rather than relying on the seller’s account. Ask also about the water supply and filtration, and ask the regulator which food-safety requirements apply.

Freezers and merchandisers at retailers

Many ice makers place freezers at gas stations, grocers and convenience stores. Ask for a list of every unit, where it sits, who owns it and what agreement covers it. If a retailer owns the unit, or the agreement ends when the business changes hands, the equipment may not come with the sale. Confirm what transfers with your lawyer.

Seasons, routes and accounts

Ask for monthly sales over several years so you can see the summer peak and the quiet months. Then look at the accounts behind them. Which retailers buy the most, how long have they bought, and do they pay on time? Ask who drives each route and whether the delivery trucks, with their refrigeration, are owned or leased.

Food safety records

Ask what food safety plan and inspection records the business keeps, and whether any inspector has raised an issue. A lawyer or the relevant authority can tell you what permits apply and whether they carry over to a new owner. See also what environmental checks you may need.