How do I judge whether a print shop’s customers would follow it to a new owner?
Find out who each customer is loyal to: the shop, the owner, a press operator or the lowest quote. Ask for the customer list with order history, mark which accounts the owner handles personally, and ask to be introduced to the biggest ones before closing. A short conversation with them tells you more than any summary.
Start with the order history, account by account. Accounts that reorder the same products on a steady rhythm, with a staff member as their contact, are likelier to stay. Accounts that exist because the owner is a friend, a neighbour or a golf partner are the ones at risk when the name on the door changes.
Next, ask why each large customer chose this shop. Convenience, turnaround, colour matching and a reliable proof process can all be reproduced by a new owner. A personal favour, a handshake price or a rush job done after hours may not be. Ask whether any customer has ever threatened to move, and what kept them.
Finally, plan the handover as part of the purchase. Ask the seller to join the first calls with key accounts, and ask for a period of support after closing. Keep your own notes on which customers you spoke to and what they said, so the file reflects more than the seller’s word. Be wary of any customer the seller will not let you meet, and note how each one reacts when you raise the idea of a new owner.
Key takeaways
- Sort customers by who they are loyal to: the shop, the owner, the staff or the price.
- Ask for introductions to the largest accounts before closing, not after.
- Make the seller’s help with account handover part of the deal terms.
- Treat a customer’s hesitation as information, and ask what would make them stay.
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 are the steps to buying a business?
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