How can I tell if a skating rink for sale is profitable?

A rink’s total revenue tells you very little. Two rinks can look alike on one line and behave differently underneath, because one lives on rentals from leagues and the other on walk-in public sessions. The way to read a rink is to take it apart by stream and by month, and then ask what is missing from the costs.

Start with the revenue streams

Ask for separate figures for public sessions, birthday parties, club and league rentals, lessons, concession and skate rental. For each, ask what is repeat business and what depends on one organizer or one instructor. Rentals under written agreements read differently from drop-in trade. Your accountant can help you ask for the records in a form you can compare year to year.

Month by month, not by year

Most rinks are seasonal in some way. Ask for monthly statements across several years and look for what moves the busy and slow periods: school calendars, league schedules, weather, a nearby competitor. A buyer needs to know whether the slow months are covered by cash from the busy ones. How can I tell if a driving range for sale is profitable? takes a similar seasonal approach for an outdoor business.

The costs that are easy to miss

• Energy and refrigeration, which can swing with the season and the equipment’s age.
• The owner’s own hours at the desk, on the floor or on the resurfacer, which a new owner may have to pay someone to do.
• Floor, slab or plant work that the seller has postponed.
• Insurance and maintenance contracts that change on a sale.

Ask the seller to walk you through what a normal year looks like and what was unusual. Then have your accountant test that account against the statements. This is how you learn what the rink does, not a verdict on it.