How do I check a music store’s lesson program and teacher arrangements before buying?
Find out who teaches, how each teacher is engaged and paid, and who the students actually belong to. Ask for enrolment history, the room and instrument arrangements, and whether teachers would stay with a new owner. Speak to the key teachers yourself.
A lesson program can anchor a music store, or it can walk out the door with a popular teacher. Begin with the roster: each teacher, what they teach, how many students they carry and how long they have been with the store. Ask how each is engaged, as an employee or contractor, and how pay is shared. Your lawyer and accountant can say what that arrangement means for you.
Look at enrolment records over several seasons. Do students return, or churn? Which months are strongest? Check whether lesson customers also buy instruments, strings and books, because that link is part of the value.
Ask who holds the student contact list, how payment is collected, and whether prepaid lessons are owed at closing. Visit the studio rooms and ask who owns the pianos, drums and equipment inside. Meet the main teachers, with the owner’s consent, and ask what would keep them. A written understanding before closing is safer than a hopeful handshake. Ask what happens to lessons when a teacher is sick or leaves, and how substitutes are arranged, since students judge the program by how smoothly it runs on a bad week.
Key takeaways
- List each teacher, their students and how they are engaged and paid.
- Review enrolment trends over several seasons, including who returns.
- Ask who owns studio equipment and who holds prepaid lessons.
- Meet the key teachers before closing and put expectations in writing.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWhat is inventory
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