What should I check before buying a video production company?

A video production company sells projects, not products. Each shoot is quoted, scheduled, filmed, edited and delivered, and then the work has to be found again. That makes the business harder to read than one with a steady counter trade. A tidy reel and a few happy clients tell you little until you see how the work arrives, who actually does it and what you would be taking over.

Projects, retainers and the pipeline

Ask the seller to split revenue by client and by type of work: one-time projects, recurring series and ongoing retainers. Recurring work is easier to hand over than a string of one-off jobs. Then ask for the list of booked and quoted shoots. A calendar that is full today may be empty in a few months, so ask how far ahead the business usually books and how the quotes were won.

Crew, editors and the owner’s role

Many production companies run on freelance shooters, editors and sound people. Ask who they are, how long they have worked with the company and whether they would stay under a new owner. Ask your lawyer how those working relationships are set up. Then ask who pitches clients and directs on set. If the owner does both, the relationships may leave with them.

Gear and edit suite

Ask for a list of cameras, lenses, lighting, audio kit and editing computers, with who owns each item and whether any is leased or financed. Have someone who knows the equipment look at its condition and age. Ask which pieces are tied to a particular style of work. Our page on how to document your processes shows what a well-organised seller can hand over.

Client concentration and the books

Check whether a few clients account for most of the work. Losing one could change the picture quickly. Ask for statements that show revenue by client and costs by project, and ask your accountant to review them. Ask what a typical slow stretch looks like in the books.