Which customer tanks and contracts go with my propane business when I sell it?

A buyer of a propane business wants to know what it is really taking on: tanks in the ground or beside buildings, the customers behind them and the paper that ties the two together. Sellers who can answer quickly tend to keep a sale moving. Begin by listing what you have, then check each item against its documents rather than your memory.

A register of tanks at customer sites

List every tank with its location, size, age, last inspection and, above all, who owns it. Some belong to you and some to the customer. Some may belong to a supplier. Ownership drives what you can sell, so settle doubtful entries before a buyer finds them. Where a tank has moved or a customer has left, note what became of it.

Rental and supply agreements

Gather every tank rental agreement and every agreement that commits a customer to buying from you. Read how each one deals with a change of owner. Some need the customer’s consent and some do not. Your lawyer can tell you which can be assigned and what notice customers may need to receive.

Automatic-fill accounts and delivery history

Automatic-fill accounts are the steady part of the business. Prepare a list of those accounts, their delivery history and the routes that serve them, so a buyer can see how regular the work is. Include any customers with unpaid invoices or open complaints, and say so plainly.

Supply arrangements and licensing

Collect your agreements with the companies that supply you, and note whether they continue after a sale. Licences, permits and safety requirements for handling propane are a question for your lawyer; ask early whether they carry over to a buyer. For the wider picture, read selling a fuel delivery company.