What should I check before buying an art supply store?

An art supply store looks simple from the door: shelves of paint, paper and brushes. Stock can age on the shelf, a few institutional accounts can carry the year, and one instructor can be the reason people come in. Your checks should follow those three threads, and your accountant and lawyer should read the records that support them.

Stock that has stopped moving

Ask for the inventory list with a sales history for each line. Paint, paper and mediums can dry out, yellow or be discontinued. Ask how the owner has counted and written down old stock, and walk the shelves with the list in hand. Your accountant can explain how stock is treated in the books, and the purchase agreement should say how stock is counted at closing.

School, college and studio accounts

Ask how institutional buyers order, on account or by season. Ask who the accounts are, how they are won and whether any rest on a personal relationship with the owner. Some may be contracts that need consent to pass to a new owner, so have your lawyer read them. Speak to the key contacts, with the seller’s permission, before you close.

Classes and workshops

If the store runs classes, find out who teaches, whether they are employees or contractors and whether they will stay. Ask whether regulars come for the instructor. Ask how bookings, deposits and any prepaid sessions are handled, and ask your lawyer whether you would take on the duty to honour them.

Online sellers and national chains

Artists compare prices online and at larger chains. Ask the seller what keeps customers coming back: advice, local brands, a good range of professional lines or convenience. Then judge for yourself whether it will last under your ownership. The questions in checking supplier relationships apply here too.