How do I tell if a deer processing business for sale is profitable?

A deer processing shop makes most of its money in a few busy weeks. A full-year statement can hide that, and it can hide how much the result depends on weather, tag draws and the owner’s own labour. To judge whether the profit shown is real, you need the books broken down by month and by type of work. This page covers how to read them. A separate checklist covers the rest of the purchase.

Ask for monthly numbers over several seasons

Request monthly statements, not only the annual summary, for several seasons. Revenue will bunch into the hunting months. Compare seasons and ask what explains the differences, whether that was the weather, how many animals hunters were allowed to take, or a change in prices or staff. A single good year does not show what a normal one looks like. Ask your accountant to help you read them, as the convenience store running-costs page suggests for another trade.

What is in the revenue

Ask for revenue split by animals handled, the base charge for each animal and the add-ons such as sausage, jerky, smoking and special cuts. Ask which add-ons earn the most and whether they depend on one skilled person. Then ask what share of the year’s income came from livestock, retail or other work outside the season.

Costs that move with the season

Seasonal labour, packaging, cooler and freezer power, and equipment upkeep all rise and fall with volume. Ask how the shop staffs the busy weeks and whether anyone is paid informally. Then ask how many hours the owner works, and what it would cost to hire someone to do that work. Ask your accountant how unpaid hours should be treated.

• Ask for monthly statements and animal counts for several seasons.
• Ask for revenue by base charge, add-ons and off-season work.
• Ask for power and seasonal labour costs by month.
• Ask what the owner does that you would pay someone else to do.