What should I check before buying a recording studio?
Before buying a recording studio, check the lease behind the soundproofed rooms, who owns the console, microphones and outboard gear and how well they work, the booking calendar and repeat clients, and how much of the studio’s name rests on the owner as engineer.
A recording studio is part room, part equipment and part reputation. The rooms are built for sound and cannot be moved. The gear is expensive, specialised and ages in ways a spreadsheet will not show. The clients book because of a sound or a person. Look at each of these separately, and leave questions about who owns the recordings themselves to your lawyer.
The room and the lease
The acoustic work, such as isolation, treatment and wiring, usually sits inside leased space. Ask who paid for it, who owns it when the lease ends and whether the landlord has agreed to the studio’s use. Read the renewal terms closely and ask your lawyer what a short remaining lease would mean for the build-out. Your lawyer can explain what a lease transfer needs.
Console, microphones and outboard gear
Ask for an inventory that lists each item, its age, who owns it and whether any is leased or financed. Ask someone who knows studio equipment to test the console, monitors and key microphones. Some pieces are favoured by engineers for their sound and can be hard to replace. Ask which items the booked clients specifically request.
Bookings and repeat clients
Request the booking calendar for several past years and ask who comes back. A studio with regular bands, producers or voice clients is easier to take over than one living on walk-ins. Ask how bookings are made and paid, and what has been deposited for future sessions. Your accountant can tie the calendar to the books.
The owner as engineer
If the owner records, mixes and sells, clients may follow them rather than the studio. Ask whether other engineers work there and whether the owner would stay for a handover. Our page on documenting your processes shows how a seller can make the work easier to pass on.
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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 CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 03Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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