How do I review a ski shop’s early-order commitments to suppliers?
Ask for every early-order form and confirmation, and list the amounts, delivery dates and cancellation terms. Early orders for next winter are promises the shop has already made. Settle in writing who pays for them and who owns the stock when it arrives, and have your lawyer confirm.
Ski shops place much of their buying months before the snow, so a sale at the wrong time can leave a buyer holding orders they never chose. Ask the seller for a complete list by brand: what was ordered, what is confirmed, what has been paid, and what is due on delivery. Also ask about deposits and cancellation or change options.
Compare orders to demand. Look at what sold last winter and what stayed on the shelf. If early orders repeat the same mix, check whether that suits the customers today. A buyer may want to adjust sizes, models or categories, so ask which suppliers allow changes and by when.
Consider timing around closing. If the sale closes before the goods arrive, who pays the supplier, and who bears the risk if they come late or damaged? Make sure the purchase agreement covers it. Your lawyer can draft the terms, and your accountant can help you see how the commitments affect cash during the first months. If any commitments look too large for the shop’s cash, raise it early, because suppliers sometimes agree to adjust terms when a sale is underway.
Key takeaways
- List every early order by brand, with amounts, delivery dates, deposits and change options.
- Compare the orders with what sold last winter before accepting the mix.
- Have your lawyer address who pays for and receives orders in transit at closing.
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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 CanadaGovernmentHow to diversify your supply chain
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