It may seem like a minor detail but there is often confusion over when and how to get the utilities in your name after you purchase a company that can cause a great deal of stress if not dealt with properly. Keep in mind, you cannot transition the electricity, water, etc. until the business sale is complete as the providers require you to be the official owner before doing so. This review discusses how to get the utilities in your name after you officially purchase a business.
A Step-by-Step Guide to Get Utilities in Your Name After a Business Purchase
The seller should make sure the utilities are properly transferred into the buyer’s name before completing the sale entirely. Otherwise, they could be held liable for payments. However, the buyer should also take steps to ensure proper utilities transfer as well. Below we discuss a 4-step process to ensure you (the buyer) can successfully transfer the utilities in your name after closing a business sale.
Step 1: Contact The Seller for More Information
You can start by getting the utility provider’s contact information from the seller. They can provide all of the details about the utility services, including the monthly payment costs. If you decide to keep the same provider for each service, then you will need to compile a list of the contact information for each provider. Of course, you can also cancel services as well if you change providers or no longer need the services. Although, this usually still requires calling the service provider (see below).
Step 2: Contact The Utility Service Provider(s)
You can then start contacting the utility service providers and have them update the billing information and change the service into your name. You may need to provide personal documents, such as your personal identification and billing address.
Step 3: Make a Deposit (if Required)
Some utility providers require a deposit anytime a service change is requested, especially if you do not have a previous billing history with the provider. The down payment can vary but is usually around one month’s payment amount. A processing fee may be required as well.
Step 4: Schedule a Utility Transfer Date
Each service provider may ask that you provide them with a transfer date. This date is usually at the end of the current bill cycle after you officially close the sale. However, in many cases, the utility service provider can update the billing information on the spot, and your new policy will become effective from the date you make the deposit and update billing information.
Buying a Business? Contact Sigma Mergers and Acquisitions Today
With 20+ years of experience assisting buyers and sellers with the mergers and acquisitions processes, you can trust us to ensure a smooth and successful transition of ownership. If you are considering buying a business and want more advice and insights into how to do so in the most effective manner, then contact us today.
