How can I tell if a ski rental shop for sale is profitable?

A ski rental shop earns its income in a short season, and snow decides much of it. That makes one strong year a poor guide. This page lists what to ask for and how to read it. It gives no verdict, because the answer depends on the statements you are shown and on what a qualified professional finds in them.

Several winters, month by month

Ask for monthly sales over at least three or four winters, including a poor one. Look for when the season starts and stops, and how much of the year’s income lands in a few weeks. Ask the seller to explain any unusual month, such as a storm, a lift closure or a holiday that fell awkwardly.

The fleet is a recurring cost

Rental gear wears out. If the statements show little spent on replacing it, the fleet may be old and the cost may land on you. Ask for the fleet list with ages, the replacement history and how used gear is sold off. Your accountant can tell you whether the books treat the fleet in a way that makes the shop look better than it is.

Rental days per set

Ask how many days a typical set is out in a season, and whether the shop tracks that. If it does not, the booking records or point-of-sale history may let you work it out together.

Where the income comes from

• Walk-in day rentals, which follow weather and weekends
• Seasonal leases for children, which repeat if families come back
• Contracts with resorts, schools or groups, and whether they stay after a sale