What should I check before buying a fishing lodge?
Check how guests reach the lodge, the condition of boats, motors and docks, who guides and how much the guest book depends on them, and what the short season really produces. Send land tenure and licences to your lawyer before you commit.
A fishing lodge is a hospitality business, a small fleet and a piece of remote property all at once. Most of the revenue arrives in a few months, so a mistake you find in the first week of the season is hard to fix until the next one. Start with the things you can see and test, then move to the paper, and bring a lawyer in early for anything about the land itself.
Look at how guests get there
Some lodges sit at the end of a road, some need a boat crossing and some depend on a fly-in service. Ask who provides that link, whether it is owned or contracted, and what happens when weather stops it. A road in poor repair or a single aircraft operator can limit the whole business. Visit by the same route guests use, and ask how supplies and staff arrive.
Inspect boats, motors and docks
Boats and motors are the working tools. Ask for service records, the age of each motor and a list of what is owned outright and what is financed or leased. Docks take a beating from ice and water levels, so have someone qualified look at them. A used-equipment valuation from an outside appraiser can help you plan repairs and replacement without guessing.
Understand the guides and the guest book
Ask who holds the relationships with returning groups, since a guide may. Ask who they are, whether they are employees or contractors, and whether they plan to stay. Read the booking history for several seasons and note how many groups are repeat visitors, how deposits are held and what has been promised for next year. Ask about cancellations in a poor weather or fishing year.
Hand tenure and licences to your lawyer
Find out whether the land is owned, leased or held under some other arrangement, and ask your lawyer which licences or permits apply to guests, food, boats and accommodation where the lodge is. Do not rely on the seller’s summary. Ask your lawyer to review the land documents and every licence, and ask your insurer what coverage the operation needs. See also due diligence for similar leisure businesses.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a golf course in Canada
- GuideBuying a banquet hall and event venue in Canada
- Expert answerHow do I structure a purchase when the target has multiple owners?
- Expert answerWhat should I change first after buying a motel?
- Expert answerWhat motel costs might the seller’s statements not show?
- Expert answerHow do I check a motel’s rooms and building before buying?
- Expert answerWhat decides whether a resort makes money year-round?
- Expert answerCan you own a holiday lodge without running it yourself?
Due diligence
Financing
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 are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 04Business Development Bank of CanadaGovernmentBuying a business? How to protect yourself from potential liabilities
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.