What should I check before buying a closed ski hill?
Start with why the hill closed, then have a qualified lift inspector look at every lift and the snowmaking before you assume anything can reopen. Ask what equipment, permits and land arrangements are still in place, and remember there is no current income to read, so a reopening plan is your own forecast.
A closed hill is a different purchase from a working one. A working hill gives you seasons of results to study. A closed hill gives you a mountain, some machinery and a story about why it stopped. Some closed hills reopen well, and many stay closed for reasons that are still there. Your job is to find out which reason applies before you commit time and money.
Find out why it closed
Ask the seller for the real reason, then look for it in the records. A hill may have closed over a failed lift inspection, a run of poor snow years, a lost lease, a dispute with a neighbour, an owner’s health, or simple lack of money. Each points to a different fix. Speak with former staff, nearby residents and the local municipality if the seller agrees, so you hear more than one account.
Have the lifts and snowmaking inspected
Idle lifts rarely return to service by switching them on. A qualified lift inspector can tell you what recommissioning would involve and what the lift would need first. Do the same for snowmaking pipes, pumps and water sources. Ask for the maintenance and inspection history, and ask whether any order or condition was outstanding when the hill stopped.
Account for what has gone missing
Hills that sit idle lose things. Grooming machines may have been sold, the lodge may have been stripped, and the season-pass holders, instructors and patrol have moved on. Walk the property with a written equipment list and tick off each item. Treat a reopening as a launch, not a continuation, with a new crew and a new base of skiers to win back.
Confirm the land and the plan
Ask whether the land is owned, leased or held under a permit, and whether that arrangement survives a sale. Your lawyer should read it, along with any environmental history. The general checklist in what to check before buying a small ski hill still applies, and your lender will set its own terms for a hill with no income.
Related reading
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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