Boat Dealership Due Diligence Checklist for Buyers
Due diligence is where a buyer confirms that the dealership described in the listing is the dealership that actually exists. Boat dealers carry inventory financed by a floor plan lender, used boats of varying condition, dealer agreements with conditions attached, customer deposits and a service department with its own records and risks. A structured boat dealership due diligence process helps buyers find issues before closing, when they can still be addressed in price, structure or timing.
This checklist is general guidance for buyers of existing, operating boat dealerships. It is not exhaustive, and requirements vary by manufacturer, state and transaction. Buyers should work with qualified attorneys, accountants and, where appropriate, environmental and property professionals. Nothing here is legal, tax or regulatory advice.
Financial Records
- Several years of tax returns and financial statements that reconcile with each other
- Monthly results by department: new, used, service, parts, storage and finance income
- Bank statements to confirm deposits
- Support for any owner add-backs
- A complete schedule of existing debt, including any seller notes and leases
Floor Plan Records
- Current floor plan statements and the unit-by-unit balance
- Curtailment history and any units past their curtailment dates
- Recent inventory audit results and any exceptions
- Any defaults, waivers or changes in terms
Our article on the boat dealer floor plan explains why these records matter at closing.
Dealer Agreements and Brand Relationships
- Copies of every dealer agreement and amendment
- Approval and change-of-ownership provisions
- Territory, performance, facility and signage requirements
- Correspondence about performance concerns or notices
See our article on boat dealer agreements and brand approval.
Inventory
- New boat, engine and trailer listings tied to serial numbers
- Used and trade-in units with acquisition cost, age and condition
- Titles and any liens on used units
- Consignment or brokerage boats that the dealership does not own
- Parts inventory, including obsolete stock
Our guide to used boat inventory at closing explains counts and valuation.
Customers, Deposits and Warranty
- Customer deposits on boats ordered but not delivered
- Open service work orders and customer boats on site
- Warranty claim history and any pending claims with manufacturers
- Customer complaints or disputes
Service Department and Staff
- Service and parts revenue by type and season
- Technician roster, experience and pay structure
- Key sales, service and office employees and their plans after the sale
- Employment agreements and any worker classification questions, reviewed with qualified professionals
Finance and Insurance
If the dealership arranges retail financing or sells insurance or protection products, buyers should understand how those programs operate and which licenses or registrations apply. Consumer lending and disclosure rules are complex and vary by state, so these matters should be reviewed with counsel.
Property and Environmental Questions
- Lease terms, assignment rights and landlord consent, or title and survey if the property is included
- Zoning and permitted uses for sales, service and storage
- Fuel, oil, solvent and waste handling, reviewed with qualified environmental professionals
- Any waterfront access, permits or shoreline structures, reviewed with qualified professionals
See our article on boat dealership real estate.
What Lenders Will Request
Lenders will review much of the same information, along with the buyer’s experience, resume and personal financial statements. Our article on boat dealer loan requirements explains the documentation frequently requested.
US Professional Funding helps buyers finance the acquisition of existing, operating boat dealerships. Learn more about our boat dealer acquisition financing.
