How do I judge the lumpy project calendar of a video production company?

Lumpy work is normal in video production, so the question is not whether the calendar swings but whether the company handles the swings. Ask for past calendars alongside bank statements, and place them side by side. You can then see when the busy periods fell and how the company coped in between.

Look for patterns. Do the busy periods match the seasons of client budgets, events or product launches? If so, a buyer can plan around them. If one big job explains a good year, treat the rest of the picture more cautiously. Ask the owner what usually fills a quiet period: retainers, stock footage, training work or nothing at all.

Then look at the costs that continue when the calendar is empty, because they decide how long a gap can last. Staff, rent, equipment payments and insurance do not stop. Ask how the owner pays for them and how much cash reserve the company keeps. Your accountant can help you read the statements and plan for the quiet periods. Finally, review the pipeline: signed jobs, quoted jobs and repeat clients. A buyer should know how far ahead the work is booked before taking over.

Key takeaways

• Compare the calendar with bank statements to see how quiet periods were covered.
• Separate repeating seasonal work from one large job that distorts a good year.
• Check the fixed costs that continue when the calendar is empty, and the cash reserve.