Buying a moving company in Canada

The question for a buyer is whether a moving company’s bookings, crews and reputation will carry on without the person selling it. That gives two jobs. The first is to confirm what you must qualify for yourself before you can run the trucks. The second is to test whether the seller’s numbers rest on things that will leave with the seller. This guide covers both, and the questions a seller may not volunteer. It does not tell you whether to buy any company. Those decisions depend on the records you are shown and the advice you get.

What you must qualify for yourself

Start with the trucks. Ontario’s CVOR page lists which vehicles need a registration and says the operator is the person or corporation responsible for the operation of the commercial motor vehicle, driver and goods or passengers. Alberta requires a Safety Fitness Certificate for carriers that own certain commercial vehicles. Transport Canada says carriers crossing provincial or international boundaries are federally regulated, though the Motor Vehicle Transport Act allows provinces and territories to regulate them on the federal government’s behalf. Ask the province where the trucks are registered what you need in your own name or your company’s name, how long it takes and whether the existing registration can be used. Confirm with an insurance broker that you can be insured to carry customers’ goods before you commit.

What to look for

Look for bookings that do not depend on the seller: realtor and corporate relocation relationships held by more than one person, and a crew that has worked together. Look at the fleet’s age and how maintenance is documented. Check whether the company belongs to the Canadian Association of Movers, which describes itself as a trade association for moving and storage companies and publishes a member directory. Membership is not a government licence; treat the directory as a place to confirm what the seller says about it, not as proof of quality.

What the seller may not mention

Ask directly about customer complaints and damage claims and how each was resolved, because a reputation problem may not show in the financial statements. Ask which referral relationships belong to the owner personally and what the owner has told those contacts. Ask which crew members could leave and what they are paid. If the company runs a storage facility, ask about the lease and the condition of the building. Ontario offers a public abstract of a carrier’s record, so you can look at safety history yourself before you make an offer.

Test the numbers against the season

Ask for monthly figures, not just annual totals, so you can see how revenue, crew hours and truck use move through the year. Ask what the company does with its crews and trucks in the slow months. Then test the seller’s story against the numbers: if the seller says the company is short of capacity, check that the booking data agrees. Read how to assess a seasonal business for the general approach.

Know exactly what is included

List what the purchase price covers. Trucks, trailers, packing supplies and equipment are the visible items. Less visible are the business name, phone numbers and website, the storage facility or its lease, customer and referral lists, and any contracts with corporate relocation accounts. BDC lists a clear transaction structure, either an asset purchase or a share purchase, among what an applicant should have before applying for its financing, so settle which one the seller is offering early. Ask your lawyer how each structure treats registrations, contracts and liabilities before you make an offer.

Competing buyers

Ask whether other buyers are looking at the same company and what the timetable is. If you are competing, decide what you can offer, such as a transition role for the seller or a longer closing to complete registrations. It does not change the checks above. Ask the seller why the company is being sold and why now, and compare the answer with the records you are shown. Ask how long the seller is willing to stay after closing and what the seller expects to be paid for that time, and get both in writing. Ask whether any customers, referral partners or crew members have been told about the sale, and what they were told. Write down each answer and check it against a document before you rely on it.

• Confirm which carrier registration and insurance you must hold, and how long each takes.
• Ask for complaint and claims history, and the outcome of each.
• Ask which bookings and referral contacts depend on the owner personally.
• Request monthly revenue and crew-hour data for at least a full year.
• Check the fleet list against each truck’s registration and maintenance records.