How do I check what a kayak or canoe rental business earns before buying?

Paddle rental income is seasonal, weather-driven and tied to a particular stretch of water. A seller’s summary of earnings can hide all three. Your task is to rebuild the picture from records you can check, so you see how the business behaves in a good summer and a poor one. Ask your accountant to lead the review.

Season-by-season records

Ask for daily or weekly booking and payment records for every season the seller has operated, and match them to bank deposits and filed returns. Look at when the season opens and closes and how many days the business could not operate. A single strong year tells you little. Several years in sequence show the pattern you would be inheriting.

Weather years and where the income comes from

Wet, smoky or cold summers can cut rentals sharply. Ask the seller to point out the weakest season and explain what happened. Then split revenue between walk-up rentals, pre-booked groups, guided tours, lessons and any sales of gear or snacks. Guided trips depend on staff and reputation, while walk-up trade depends on location and foot traffic.

Access to the water

Much of the income may depend on a launch site, a dock or a permission to operate from land the seller does not own. Ask to see any lease, concession or permit that gives that access, and ask your lawyer whether it can pass to you and on what terms. If the access cannot be secured, earnings on paper may not be earnings you can keep.

Fleet replacement and real costs

Boats, paddles, vests and trailers wear out. Check whether the statements show repairs, storage, insurance and replacement, and whether the owner’s own labour is paid for. For the general method, see what to check before buying an equipment rental business.