How can I tell if a driving range for sale is profitable?

An outdoor range lives with the weather. Its income rises with sunshine and falls with rain and cold, so a single yearly total hides the part that matters. The question is not only whether it earns, but when, from what, and how much of that holds up in a poor season. This is different from an indoor, year-round business, and the books should show it.

Read the months, not the year

Ask for monthly sales and expenses over several full years. Look at which months carry the year and how much a wet stretch cut. A seller who offers only an annual number may be hiding a pattern, or may simply not track one. Either way, ask for the till reports and the bank statements behind it, and compare them.

Where the income comes from

Divide income into buckets of balls, lessons, club rental, pro-shop sales and food or drinks. Each behaves differently. Lessons may depend on one instructor. Food may need a licensed kitchen and its own staff. If one line carries most of the income, ask what happens if it disappears. The BDC guide to financial statements explains the basic reports you will read.

Off-season and owner pay

Find out what the range costs when it is closed: insurance, utilities, property costs, equipment storage and any staff kept on. Then check what the owner takes. If the owner works every shift without pay, ask how the books would change with paid staff. Ask your accountant to adjust for that and for any personal costs run through the business.