What should I check before buying a ski shop?
Read several winters of sales side by side, because snow decides the season. Ask what pre-season orders the seller has already committed to, review the stock left at the end of the season, and find out who runs the tuning and boot-fitting bench and whether they will stay.
A ski shop earns most of its year in a short stretch, and snow decides how good that stretch is. A buyer who sees only the last winter may be looking at an unusually good or poor one. This page covers a retail and service shop. A ski hill is a different business, covered in what to check before buying a small ski hill.
Read several winters, not one
Ask for monthly sales over a number of winters and set them next to each other. Look for how the shop did in light-snow years and how fast it recovered after a late start. Ask what the owner did when the weather was poor: discounting, rentals, or shifting to other sports. Then ask how much of the year comes from the winter season, and what fills the summer.
Orders already placed
Ask when the brands expect pre-season orders to be placed. If the sale closes mid-year, the seller may already have committed the shop to skis, boots and clothing. Ask for every open order, the delivery dates and the cancellation terms. Check whether the supplier will accept a new owner, and whether any dealer agreement needs the supplier’s consent.
Stock, bench and people
Look closely at what is left on the racks at the end of the season. Last year’s models can be hard to move. Ask how the seller handles end-of-season stock and what is owed on it. Then look at the tuning and boot-fitting bench. Find out who does the work, how long they have been there, and whether they plan to stay with a new owner.
Related reading
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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 CanadaGovernmentWhat are the steps to buying a business?
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