How can I tell whether a first aid training business is profitable?

Ask about class fill rates, corporate bookings and costs. A seller can describe all three in a good light, so ask for records. The aim is not to reach a verdict yourself. It is to see the business clearly enough that your accountant can test it, and that you can ask better questions.

Revenue by course and by client type

Ask for revenue broken out by course type, and by public classes versus corporate or on-site bookings. The mix matters, because public classes depend on marketing and corporate work depends on relationships. Match the breakdown to the financial statements and the bank deposits. If the seller cannot split it, find out why. The booking system is often the best source.

Fill rates, instructors and venues

The booking system shows how full classes actually were. Compare that to the seats the company offered. Then look at how instructors are paid and engaged, whether as employees or contractors, and what venues and equipment cost to run. Ask how often equipment is replaced. Your lawyer can advise on instructor arrangements, and your accountant on how costs are treated.

Client concentration and repeat bookings

List the largest corporate clients and how long each has booked. Ask which renew on their own and which depend on the owner’s personal contact. If one or two clients supply most of the corporate work, losing one after a sale could change the picture. Ask to speak with them once you are far enough along and the seller agrees.

How much depends on the owner

If the owner teaches many classes, a buyer who cannot or will not teach has to pay instructors for that time. Ask which classes the owner personally leads. See how to check supplier relationships for a similar approach to dependence, and what to check before buying a trucking company.