What should I check before buying a boat tour business?

A boat tour business is two businesses in one: a vessel that has to stay safe and running, and a tour operation that has to keep filling seats. A buyer can look well at the second and miss the first. The checks below follow the boat, the place it ties up, the people who run it and the bookings that pay for it. Each one gives you something to ask the seller and something to verify yourself.

The vessel and its condition

Ask for the maintenance records, the haul-out history and a list of repairs the seller has put off. Then hire an independent marine surveyor to look at the hull, engines and safety gear. The seller’s opinion of the boat is not a substitute. Ask what it costs to keep the boat ready each season, and whether any major component is near the end of its life. A surprise repair after closing lands on you.

Dock access and the lease behind it

A tour boat is only useful if it can load passengers at a convenient spot. Find out who owns the dock or landing, what agreement gives the business access, how long that access lasts and whether it can be passed to a new owner. Read it before you commit. The same goes for any storage or office space. Your lawyer can tell you whether the access carries over.

People, season and bookings

Ask who captains the boat and who guides. If the owner does both, the business may lose much of its appeal when the owner leaves. Ask the seller to keep the crew on, or at least to introduce you. In the booking records, look at how many days were cancelled for weather, how long the season ran and where customers found the tour: direct, online platforms, hotels or cruise partners. Read recent reviews, too.

Questions to put to the seller

• When was the vessel last surveyed, and may I commission my own survey?
• What documents give the business its dock access, and who must agree to a change of owner?
• Who is the captain, and would they stay?
• What would a poor weather season have done to last year’s results?

The general steps in what to check before buying a trucking company apply to any equipment-heavy business, and so does how to find hidden debts and personal guarantees. Ask a qualified marine professional what certification the boat and its crew need and whether it carries over to you.