What should I check before buying a billboard company?

A billboard company is a collection of sites. The advertisers matter, but without secure sites there is little to sell to them. That makes the due diligence different from a service firm. You are checking land agreements, steel and electronics, and a paper trail that shows each structure may stand where it does. Work through it site by site.

Ground leases with landowners

For each site, read the lease with the landowner. Note the remaining term, renewal options, who pays what, and whether the landowner must consent before the lease passes to a buyer. Ask how long each lease runs, since a board on a lease that ends soon may not stay in the business. Ask your lawyer to review how consent and assignment work. What to check in a premises lease covers similar ground.

Structures and digital hardware

Ask for maintenance and inspection records for every structure, and have a qualified person look at the older ones. For digital faces, ask about the screens, controllers, power supply and who services them. Find out what has been replaced, what is near the end of its life, and whether warranties pass to a buyer.

Permissions and insurance

Each structure may need approvals where it stands; ask your lawyer which apply. Rules differ by location and change, so ask your lawyer to confirm that every board is properly approved and that nothing is outstanding. Then review the insurance on the structures and the liability cover, and ask for the claims history.