How do I check a ski shop’s inventory for last season’s unsold stock?

Start with the inventory list. Ask for it broken out by category, such as skis, boots, bindings and clothing, with model years, quantities and what was paid. Compare it with what you see on the floor. Look in back rooms, mezzanines and storage units as well, because older stock tends to collect there.

Next, count. Choose a handful of items from the list, find them on the shelves and check the labels. Do the same in reverse, pulling items from the shelves and confirming they appear on the list. A mismatch in either direction is worth a question.

Ask how past markdowns were handled and what the seller does with items that do not sell. Look at the financial statements to see how inventory is recorded, and ask your accountant whether older stock is carried at a sensible amount. The inventory guide explains how it appears on the balance sheet. Finally, ask what the seller expects to happen with aged items after the sale. Decide with your lawyer how the purchase agreement will treat inventory counts at closing. Ask which brands accept returns or exchanges, and whether any pending orders for next season would add to unsold goods.

Key takeaways

• Request inventory by category with model year, quantity and cost.
• Count items from list to shelf and shelf to list, including storage areas.
• Ask your accountant how aged stock is recorded in the statements.