Which hearing-aid manufacturer agreements should I read before buying a hearing clinic?
Read every agreement with the companies that supply hearing aids, plus any that cover pricing tiers, rebates, repair routing, warranty handling and buy-back of unsold devices. Check whether each one transfers to a new owner, who can end it, and what the clinic owes if it leaves.
Ask the seller for a list of manufacturer relationships and the signed paper behind each one. Then read for the practical terms. Does the clinic get its pricing because of its volume, and would a change of owner reset that? Are there minimum purchase commitments, exclusive arrangements or rebates that depend on past sales?
Look closely at what happens to devices already sold. Warranty claims, repairs and loss-and-damage coverage often run through the supplier, so ask how those obligations are handled and whether the clinic carries any open liabilities. Also ask about consigned stock, returns of unsold devices and any money the clinic owes or is owed.
Finally, check how the agreements treat a change of ownership. Some need consent, some can be ended on short notice, and some quietly lapse. Your lawyer should read them, because the answer is in the wording. Ask the seller to arrange an introduction to the supplier representatives so you can confirm directly that the relationship will continue. Keep a copy of every document you were shown, and note anything the seller says that is not in writing. Compare the list of agreements with the invoices to spot any relationship nobody mentioned.
Key takeaways
- List every supplier relationship and read the signed paper, not a summary.
- Find out whether pricing, rebates and warranty support survive a change of owner.
- Ask your lawyer to read the transfer and termination clauses.
- Compare the agreements you are shown with the invoices to find any that nobody mentioned.
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Due diligence
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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