What should I check before buying a dive shop?

A dive shop looks like a retail store, but much of its risk sits in life-support equipment and in a small team of people. Treat the review as two jobs: one on the equipment and its records, and one on the people and contracts. Ask your accountant and lawyer to join early, and bring a technician who knows dive gear.

Compressor, fills and service records

Ask to see service records for the compressor, filtration, storage cylinders and fill station, along with tank inspection and testing records. Missing records are a reason to ask more questions, not to assume the best. Have a technician look at the equipment and tell you what needs replacing soon, so that cost is known before you agree on terms.

Rental gear

Rental regulators, buoyancy devices, suits and tanks wear out and need replacing on a cycle. Ask for an inventory showing the age of each item, how often it is serviced and how much of it is in daily use. Profit that ignores the cost of keeping rental gear safe and current is not a fair picture of earnings, so compare the statements against the fleet you see.

Instructors and your training agency relationship

Courses are often tied to particular instructors, so find out who teaches, whether they are employees or contractors, and whether they plan to stay. Meet them before closing if the seller allows it. Read any agreement with a training agency carefully. Whether it transfers to a buyer, and on what terms, is a question for your lawyer. Certification and safety rules belong with the agency and the regulator.

Dealer terms and revenue mix

Brand dealer agreements may limit what you can stock or require the brand’s approval of a new owner. Ask for revenue split by retail, courses, fills, travel and charters, and check how each part depends on the owner. A shop that relies on one activity or one person carries a different risk from a balanced one. For a related review, see how to judge a rental fleet before buying a ski rental shop.