Asset Sale Agreement for Plumbing Businesses

What a good one includes

• A detailed, itemized schedule of all physical assets being sold, including vehicle VINs, equipment serial numbers, and inventory counts.
• A clear list of assets specifically excluded from the sale, such as personal tools, specific vehicles, or accounts receivable up to the closing date.
• An as-is clause for used plumbing machinery alongside disclosures of any known defects to prevent future disputes.
• Terms governing the transfer of customer databases, phone numbers, website domains, and ongoing service contracts.
• A clear breakdown of the purchase price, payment schedule, and the allocation of the purchase price for tax purposes.
• A reasonable non-compete clause that outlines where and for how long the seller agrees not to open a competing plumbing business.
• An agreement on whether the seller will provide temporary training or ride-alongs to help the buyer transition existing customer accounts smoothly.

Common mistakes to avoid

• Failing to specify who is responsible for completing and paying for ongoing plumbing jobs that are mid-progress at the time of the sale.
• Forgetting to transfer or properly release liabilities for vehicle titles and equipment leases associated with the plumbing fleet.
• Neglecting to include a clear as-is disclaimer, which leaves you vulnerable if a used drain snake or hydro-jetter breaks shortly after closing.
• Vaguely defining the customer list transfer, causing confusion over who owns the rights to follow up with past clients for repeat service.

Frequently asked questions