What should I check before buying a trade show exhibit company?
Before buying a trade show exhibit company, check how its work splits between custom builds and rental exhibits, who designs and builds them, which clients come back each season, what the shop and equipment look like, and whether the install and dismantle crews would stay. Ask for these in writing and verify them with your advisers.
An exhibit company is part design studio, part fabrication shop and part logistics crew. A sign shop or an event rental business shares some of that, but not the combination, and the combination is what you are buying. Start by working out which part carries the business: the designers, the shop, the rental stock or the client list. The sections below walk through what to ask for in each area.
Custom builds and rental exhibits
Custom booths are designed and built for one client, while rental exhibits are owned by the company and reused. The two behave differently. Custom work depends on winning each project and on the people who can design it. Rental stock depends on condition, storage and how often it goes out. Ask the seller to separate the two in the records so you can see which one drives the business.
Design staff and portfolio
Find out who designs the booths and whether those people plan to stay. Ask to see past projects and the drawings behind them. Also ask who owns the design files, since a designer who is an employee and one who is a contractor may be in different positions. Your lawyer can explain what passes to you in the sale.
Repeat clients and show-floor relationships
Ask which clients return each season and how the company wins them. Relationships with show organizers and the service desks on the floor matter too, because they smooth the install. Many buyers ask the owner to introduce them to the main clients during a handover, so consider raising it before closing.
Shop, equipment and crews
- Warehouse and fabrication equipment, with its condition and maintenance records
- Trucks and any shared vehicles, and who is on the title
- Install and dismantle crews: employees or hired by the job
- Storage space the company leases or owns
Our page on how to verify inventory and equipment before buying shows how to confirm that what the seller lists is really there.
Related reading
12 pages on the same subject, grouped by topic.
Selling
Buying
Due diligence
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 CanadaGovernmentWhat is inventory
- 04Canadian Intellectual Property OfficeGovernmentIndustrial designs
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