Sample only. This is what Change Hands writes for a seller from their own answers and figures, shown here for a made-up surf school. The seller chose to keep it anonymous, so no business name, website or social media appear. Buyers see a real IM only after the seller approves them and they sign the NDA. List your business free to get yours.
Established surf school with a council beach permit, Northern Rivers NSW
This information memorandum has been generated by Change Hands' AI from information provided by the seller. Change Hands has not checked or verified it, and it is not financial, legal or tax advice.
Before making any decision or offer, have your accountant and solicitor review this document, the business's financial records and any contract of sale. It is confidential and provided only to buyers who have signed the seller's NDA.
A surf school operating on the NSW North Coast for 14 years, running group and private lessons from a council-permitted beach location, along with school holiday programs and corporate team days.
The business is semi-managed: two full-time instructors and six casuals deliver most lessons, while the owner works about 25 hours a week, mainly on bookings, rosters and supplier accounts. The owner is retiring and offers an eight-week paid handover.
The business was started in 2012 by the current owner with one instructor and a single trailer of boards. It secured its council beach permit in 2014, added school holiday programs in 2016 and began offering corporate team days in 2021.
Lessons are offered year-round, with timetabled sessions twice a day in the warmer months.
| Service | Price |
|---|---|
| Group lesson (2 hours) | $75 adult · $65 child |
| Private lesson (1.5 hours) | $160 per person |
| School holiday program (3 days) | $210 per child |
| Corporate team day | from $1,800 per group |
Around 70% of bookings are made directly through the business's website, with the remainder through tour booking platforms and local accommodation partners. No single customer accounts for more than 12% of revenue. Customers are mainly domestic holidaymakers, backpackers and local families.
The business trades seven days a week from 7am to 5pm, closing on Christmas Day. About 60% of revenue is earned between December and April.
The business employs two full-time instructors (with the business for six and four years) and six casual instructors. The owner works about 25 hours a week on bookings, rostering, supplier accounts and occasional lessons.
Equipment is kept in a leased storage unit near the beach. The lease runs to 2031 at $18,000 a year.
The business markets through Google Ads, partnerships with 15 local hostels and holiday parks, and repeat and word-of-mouth bookings. It has an established website with online booking and a 4.8-star rating from over 900 Google reviews.
Financial years ending 30 June, as provided by the seller and checked by the seller's accountant. Net profit is with the owner working in the business.
| FY24 | FY25 | FY26 | |
|---|---|---|---|
| Revenue | $452,000 | $498,000 | $540,000 |
| Cost of sales | $21,000 | $24,000 | $27,000 |
| Gross profit | $431,000 | $474,000 | $513,000 |
| Operating expenses | $253,000 | $282,000 | $308,000 |
| Net profit (owner working) | $178,000 | $192,000 | $205,000 |
Profit under management, FY26: $140,000 (after paying someone to do the owner's job). The owner notes that FY24 included a one-off $14,000 cost to replace the trailer.
| Ratio | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue growthChange in revenue on the year before | – | +10.2% | +8.4% |
| Net profit growthChange in net profit on the year before | – | +7.9% | +6.8% |
| Gross profit marginGross profit as a share of revenue | 95.4% | 95.2% | 95.0% |
| Net profit marginNet profit (owner working) as a share of revenue | 39.4% | 38.6% | 38.0% |
| Operating expenses to revenueRunning costs as a share of revenue | 56.0% | 56.6% | 57.0% |
FY26, each expense as a share of revenue.
| Expense | Per year | Share of revenue |
|---|---|---|
| Wages and super | $168,000 | 31.1% |
| Insurance | $24,000 | 4.4% |
| Marketing | $22,000 | 4.1% |
| Vehicle and fuel | $19,000 | 3.5% |
| Storage lease (rent) | $18,000 | 3.3% |
| Booking and card fees | $17,000 | 3.1% |
| Equipment and wetsuits | $14,000 | 2.6% |
| Licences and permits | $11,000 | 2.0% |
| Accounting and admin | $9,000 | 1.7% |
| Other | $6,000 | 1.1% |
| Total operating expenses | $308,000 | 57.0% |
How the asking price of $680,000 compares with the profit figures the seller has provided. The multiple is the asking price divided by one year's profit; the yearly return is that profit as a percentage of the asking price.
| Based on | Yearly profit | Multiple | Yearly return |
|---|---|---|---|
| Working ownerProfit with the owner working in the business, for a buyer who will do the same | $205,000 | 3.3× | 30% |
| Under managementProfit after paying someone to do the owner's job, for a hands-off buyer | $140,000 | 4.9× | 21% |
Calculated from the seller's figures for FY26. This is not a valuation. Speak to your accountant or a qualified business valuer about what the business is worth to you.
The owner identifies weekend adult surf coaching programs and stand-up paddleboard hire as services not yet offered.
The owner is retiring after 14 years and will provide an eight-week paid handover, including introductions to suppliers, partners and the council permit contact.
Prepared from information supplied by the owner and presented by Change Hands' AI. Change Hands is a listing and matching platform, not a business broker, and has not checked this information. It is confidential and provided only to buyers who have signed the seller's NDA. Do your own due diligence and get advice from your own accountant and solicitor before buying. · Sample listing CH-SAMPLE