What happens to my leased printing equipment when I sell my print shop?
Leased presses and finishers do not simply pass to the buyer. List every lease and service contract, ask each lessor whether it will assign the agreement or sell you the equipment, and show the buyer the true running cost, including click charges, so nothing surfaces after closing.
Many print shops run their main machines on lease or on service contracts that charge by the page. If yours does, the equipment is not yours to hand over. A buyer needs to know which machines you own and which you do not, and what each agreement asks of them. Gather the facts first, then decide how you want to handle each machine.
List every agreement
Make one list covering each press, finisher, large-format printer and cutter. For each, note whether it is owned, leased or financed, who the other party is, when the term ends and what happens at the end. Include service contracts, even when they are kept in a separate file. Give buyers a list like this alongside the rest of your records.
Ask the lessor about assignment or buyout
Contact each lessor early and ask whether the agreement can be assigned to a buyer, what the lessor wants to see from the buyer, and whether a buyout is available. Some lessors will want to review the buyer’s finances. Your lawyer should read each agreement before you speak with anyone, and can tell you what it says about your responsibility after a sale.
Show the true running cost
Click charges, supplies and service fees are part of what a machine costs to run. Present them honestly next to the revenue the machine produces. A buyer who finds higher running costs after closing will question the rest of your numbers. Our page on what a buyer checks about equipment shows what they will look for.
- Owned, leased or financed, for each machine
- Lessor, term and end-of-term options
- Assignment or buyout terms
- Click charges and service fees
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 CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
- 03Business Development Bank of CanadaGovernmentUnderstanding the options for selling your business
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.