Do I need to see a design studio’s client sign-off emails before buying it?
Usually yes, at least a sample. Sign-off emails show whether clients approved the work, how many revisions were needed and whether any disputes were settled. Ask for a representative set, and agree in advance how client privacy will be handled by both sides.
Sign-off emails are a record of the relationship. They show when a client accepted a design, whether changes came late and whether anyone raised a complaint. For a buyer, that tells you how smoothly the studio actually delivers, and whether any invoiced work is still open to challenge.
You probably do not need every email. Ask for a sample covering large projects, recent work and any job that went badly. Include a few projects the owner considers troublesome, so the sample is not only the good news. Look for patterns: repeated rounds of revisions, disputes about scope, or clients who approved verbally and paid late.
Client messages can contain private information, so agree how the review will work. The owner may prefer to redact names, share the emails only at a late stage or have you sign a confidentiality agreement first. Your lawyer can tell you what the studio may disclose about its clients and under what conditions. If the owner cannot produce sign-offs, ask how approvals are recorded. A studio with no paper trail is harder to assess, and you may want a protection in the purchase agreement. Your lawyer can suggest what that might look like.
Key takeaways
- Ask for a representative sample of sign-offs, including the difficult projects.
- Agree how client privacy will be handled before any messages are shared.
- If approvals are not recorded, raise that with your lawyer before agreeing to terms.
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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 are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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