What should I check before buying a sign and graphics shop?
Before buying a sign and graphics shop, check the wide-format printers and laminators, the installers who do the on-site work, how much comes from repeat fleet and retail accounts versus walk-ins, who owns the design files, and how reprints and warranty claims have been handled.
A shop that makes vinyl lettering, banners, decals and vehicle wraps is a mix of production and trades work. The printers matter, and so do the people who can install a wrap cleanly in a cold bay or on a customer’s site. This page is about that kind of shop, not an illuminated sign manufacturer, which raises other questions.
Printers, laminators and cutters
Ask for service records on each wide-format printer, laminator and plotter, and what the shop spends on ink, media and maintenance in a normal season. Ask which machines are leased or still financed, and confirm with your lawyer how each obligation would transfer. A technician or the equipment dealer can tell you how much life is left in each machine.
Installers and how work comes in
Installation skill is hard to replace. Ask how many installers the shop has, whether they are employees or contractors, and who trains new ones. Then look at the customer mix. Ask how much comes from fleet and retail accounts that reorder, and whether whether those accounts are under contract or just habit, and who at the shop holds each relationship.
Design files, reprints and warranty claims
A library of customer layouts saves hours on every repeat order. Ask who owns those files and whether they are organized well enough to find. Ask how often jobs have been reprinted because of errors or fading, how claims were settled, and whether any are open. Warranty promises made on wraps and outdoor graphics may follow the business; read them and ask your lawyer.
Lease, vehicles and the next step
Check the lease for bay height, loading access and how long it runs. Ask about service vans and ladders or lifts. Read how to find undisclosed debts and personal guarantees before you settle on the structure, and ask your lawyer what a purchase agreement should say about open claims.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a sign manufacturer in Canada
- Expert answerWhat should I check about the equipment when buying a print shop?
- Expert answerWhat happens if I buy a business that is behind on rent or taxes?
- Expert answerCould undisclosed severance liabilities come with the business I buy?
- Expert answerShould I buy an existing vehicle wrap shop or start one?
- Expert answerHow do I tell whether a vehicle wrap shop’s profits will last after a sale?
- Expert answerWhat should I check before buying an awning business?
Valuation
Selling
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
- 04Canadian Intellectual Property OfficeGovernmentA guide to copyright
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