What should I check about the equipment when buying a print shop?
Check whether each machine is owned or leased, whether service contracts move to you, what the meter counts and service logs show, and whether the workflow software is licensed to the business. Then have a service technician inspect the main equipment before closing.
A print shop is a business built around its machines, and many of them are expensive to repair or replace. Machine age matters, and buyers should go further than a glance at the shop floor. Start with a list of every machine, then work down it.
Owned, leased or financed
Ask for a list that marks each press, cutter, folder, laminator and digital device as owned, leased or financed. Leased and financed items may carry payments that continue after closing, or consent requirements from the lender or lessor. Your lawyer can tell you what happens to each at closing and whether a lien search is needed.
Service contracts and logs
Manufacturers and dealers often sell service agreements. Ask which are in place, what they cover, and whether they pass to a new owner. Ask for the service history on each machine, including repeated faults. A machine that is always being fixed may be cheaper to keep running than to replace, but you should know which it is.
Meter counts and wear
Many digital presses record how much they have printed. Ask to read the counters and compare them with the seller’s stated volume and the machine’s age. A press that has run hard needs different expectations from one used lightly. The manufacturer or dealer can explain what the figures mean for that model.
Software and a technician’s look
Workflow, design and ordering software is often licensed, not owned. Check which licences are held by the company and whether they can be transferred. Before closing, bring a service technician to inspect the main equipment and report in writing. See also the guide to selling a print business to understand how sellers present their equipment.
Related reading
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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 CanadaGovernmentEquipment purchase financing for entrepreneurs
- 04Business Development Bank of CanadaGovernmentBuying a business? How to protect yourself from potential liabilities
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