What should be on my checklist when buying a print shop?
A print shop checklist should cover the customers and repeat jobs, work in progress and proofs, paper and ink suppliers, the people who run the presses, the artwork files, and the premises and power the equipment needs. Equipment is one line on the list, not the whole list.
A print shop looks like a room of machines, but what you are buying is a set of customer habits, a team that knows how to get jobs out the door, and a library of files. Machines matter, yet they are only one line on the list. Build the checklist around how work comes in, how it is made, and how it gets paid for, then check each stage against records.
Customers and repeat work
Ask for the customer list by account, with how long each has ordered and what they usually order. A shop that reprints the same forms, labels or brochures every few months is different from one that lives on one-off jobs. Find out who holds each relationship. If the owner takes every call personally, ask how the buyer would be introduced, and whether any large account has a standing agreement.
Jobs in progress, proofs and files
Ask what is on the floor today. Deposits taken for unfinished work, jobs awaiting proof approval and reprints owed to customers may become open items at closing, so list them and ask your lawyer how to settle who finishes and who pays. Ask where the artwork files live, who can open them, and whether customers own their files or the shop does. Back-ups of that library are worth seeing.
Suppliers and the people who run the presses
Ask which paper, ink and finishing suppliers the shop relies on, what credit terms they extend, and whether those terms would carry over to a new owner. Then look at the staff. Press operators and finishers hold knowledge that is not written anywhere. Ask what each person does, who could cover an absence, and whether key people plan to stay.
Premises, power and equipment
Presses and cutters often need particular floor space, ventilation and electrical service. Read the lease for those needs and for how long it runs after you take over. For machines, see what to check about equipment when buying a print shop, and ask your lawyer about anything you read in a lease or supply contract.
Related reading
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Buying
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Selling
Valuation
Legal
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 CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentEquipment purchase financing for entrepreneurs
- 04Canadian Intellectual Property OfficeGovernmentA guide to copyright
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