How do I tell whether a print shop’s profits will last after a sale?

A print shop’s statements show what happened under the current owner. They do not show what happens when that owner stops answering the phone. A buyer’s real question is how much of the income comes from the shop and how much comes from the person. You can test that with records the seller already has, before you spend time on anything else. Start with the customers.

Who really owns the accounts

Ask for a list of commercial accounts and who handles each one. Some clients deal with a salesperson or a press operator, and the relationship will stay. Others call the owner directly and have for years. Ask the seller to introduce you to the larger ones during the sale, and see how they react. Note how each client reacts, including any mention of a competitor.

What repeat orders show

Ask for invoices grouped by client over several years. Look for regular reorders such as stationery, forms, labels and packaging, and compare them with one-off jobs like event signs. Repeat work is easier to plan around. Watch for a client whose orders have thinned out, and ask the seller why. If one customer fills much of the calendar, our page on what to check about equipment when buying a print shop shows how that also affects which presses matter.

Where the work is moving

Compare the job mix over time. Is work shifting from offset toward digital, wide-format or short runs? Does the shop have the equipment and the skills for what customers now order? Many clients are also printing less than they used to, so ask what the shop is doing to replace that volume.

Questions to put to the seller

• Which clients would you be most worried about losing, and why?
• Who quotes jobs and who keeps the client relationships?
• Which products have fallen off, and what replaced them?
• Would you stay on during a handover, and for how long?