How can I tell if a water park is profitable before buying?

A water park’s year is a few busy weeks and a lot of preparation around them. An annual statement can hide that, because one hot summer and one wet one look alike once they are added up. The aim is to see how the income arrived, week by week, and what had to be spent to earn it. Ask for the underlying records, not only the summary.

Attendance and the weather

Ask for daily or weekly attendance and gate receipts for each season the owner can provide, and note which weeks were closed or slow. Then set them beside what the weather did. A strong year after a poor one may say more about the summer than the park. Ask the owner how a wet or cool stretch was handled, including staffing on slow days.

Passes, groups and other income

Look at how income splits between daily admission, season passes, group and camp bookings, food, rentals and cabanas. Passes can be paid early and used over the season, so ask how the owner records them. Group bookings should be traceable to named customers, and you should know whether they are likely to stay after a sale.

Upkeep and opening costs

Many costs sit outside the busy weeks: preparing the pools and pumps in spring, hiring and training, insurance, utilities and repairs. Ask what maintenance the owner delayed and what the equipment will need soon. Your accountant can help you work out which of these belong in the earnings picture and which are one-time. How to read earnings when work swings shows a similar approach for uneven income.

Checking what you are told

• Match statements to bank deposits and payment-processor reports.
• Ask for the owner’s own wages and any family labour, shown separately.
• Request equipment servicing invoices for the last several seasons.
• Compare the figures with what the seller’s listing says.