What should I look at in a sign shop’s stock of aluminum, acrylic and LED modules?
Walk the stock with a list. Check that sheets are flat and unscratched, acrylic is not yellowed or cracked, and LED modules are the current type and still work. Ask which items are tied to a customer job. Count what is reusable, and agree in writing how the stock is counted and treated at closing.
Sign materials hold their value only if they can still be used. Look at aluminum for dents, corrosion and bent edges. Check acrylic for scratches, cracks, yellowing and protective film that has aged on the sheet. Test a sample of LED modules for brightness and colour match, and confirm that the type is still sold, since a discontinued module is hard to repair or match.
Separate the stock into groups. Some is general inventory the shop uses every week. Some was bought for a specific job and may belong to a customer or be committed to one. Offcuts may be useful or may be clutter. Ask how long each item has been on the shelf and how fast it moves.
Then deal with the deal. Agree on a count date, who takes part, which items qualify and what happens to damaged or aged stock. Your accountant and lawyer can advise on how it is reported and written. Check storage too, since damp or poor stacking damages materials over time. Ask whether suppliers will take back unopened lots. Ask the seller what the shop would reorder first if it won a large job tomorrow, which shows how well the stock matches the work it really does.
Key takeaways
- Inspect sheets, acrylic and LED modules for damage, ageing and availability.
- Separate general stock from items committed to customer jobs.
- Agree the count date, qualifying items and treatment of damaged stock.
- Ask your supplier whether the current stock types are still made.
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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 CanadaGovernmentWhat is inventory
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