Deavo
Due diligenceExpert answer · 1 min read

How do I see if a coding school’s summer workshops carry its income?

Split the school’s income by program, then by month. Put the summer workshops on one line and everything else on another. If the workshop line supplies most of the profit, the school depends on a short season rather than steady enrolment.

Ask the seller for an income statement broken down by program, with each month shown separately. A single total hides the pattern. You want to see what comes in during the workshop weeks, what comes in the rest of the calendar, and what each stream costs to deliver.

Costs matter as much as revenue. Workshops may need extra instructors, rented space or marketing spend that regular classes do not. Look at the margin on each line, not only the sales. A big revenue line with thin margins carries less than it appears to. Also ask whether workshop prices, class sizes and instructors were the same each summer, since a good season built on a one-time promotion will not repeat on its own.

Next, ask where workshop learners come from. Do families return, or does the school pay to find a fresh group each time? Check how early registrations arrive and how much is paid before the start date. Late, last-minute signups make the income harder to plan around. Finally, test the quiet months. Ask how the school paid rent and wages when workshops were not running, and whether the owner topped up the gap from personal funds.

Key takeaways

  • Request income by program and by month, never a single yearly total.
  • Compare margins on workshops against regular classes, not just revenue.
  • Ask how the school covered costs during the months without workshops.
  • Check that workshop prices and class sizes held steady between summers.

Sources

This answer is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Business Development Bank of CanadaGovernment
    What is an income statement?
    bdc.ca·Checked Oct 24, 2026
  2. 02
    Business Development Bank of CanadaGovernment
    How to conduct due diligence when buying a business
    bdc.ca·Checked Oct 21, 2026
  3. 03
    Business Development Bank of CanadaGovernment
    What are the steps to buying a business?
    bdc.ca·Checked Oct 21, 2026

Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.