What should I check before buying a pool supply store?
Before buying a pool supply store, check how sales and cash move through the season, how inventory will be counted at closing, what the supplier terms are, whether the water-testing customers and records come with the shop, and how much of the trade depends on the owner personally.
A pool supply store lives by the calendar. Customers arrive in a rush when the pools open, ask for water tests all summer, and fade away in the fall. That rhythm shapes what you should check. Ask to see the shop through a full year of records, not a single good month, and read them with the seasons in mind. The questions below are a starting point for your own list.
The sales curve and cash needs
Ask for monthly sales across at least a full cycle and see where the peaks fall. Then ask how the shop paid for its spring stock. Some shops buy heavily before the season, sometimes on supplier programs with their own terms. Work out how much cash you would need to carry the business from the last sale of the year to the first strong week of the next.
Inventory at closing
Chemicals and some parts do not keep forever, so age matters as much as count. Ask how the stock will be counted on closing day, who does the counting, and how old or damaged goods will be handled. Your lawyer can tell you how the agreement should deal with it. Compare the count with the purchase records, as described in what to check about supplier relationships.
Suppliers, customers and the owner
Ask each major supplier whether the account and any early-buy program continue for a new owner. Look at what comes with the customer side: water-test history, loyalty records and the contact list. Ask which customers come to the shop for the owner’s advice. A shop that is built on one person’s know-how needs a handover plan, and a longer transition period may be worth requesting.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat is inventory
- 03Business Development Bank of CanadaGovernmentInventory financing: What it is and how it works
- 04Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
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