Professional & B2B Services · Buyer guide

Buying a Commercial Printing business

Published · Reviewed by The Diligence Standard Team · Updated

a Commercial Printing business can look attractive on a summary P&L while the operating details underneath it change the cash flow, transferability and capital a buyer will actually own. Diligence should connect the reported earnings to the business-specific drivers that create them.

How the business works

Repeat B2B accounts, machine utilization, substrate/input costs, equipment CapEx and sales relationships drive value.

Risks to test

  • Aging presses
  • Owner sales relationships
  • Customer concentration
  • Input cost volatility
  • Technology shift
  • Lease/equipment debt

Evidence to request and reconcile

  • Customer/product sales
  • Machine utilization
  • Equipment schedule
  • Maintenance
  • Job costing
  • Sales rep production

Decision questions

  • What equipment investment is due?
  • Which customers depend on owner/sales rep?
  • Which products create margin?
  • What is machine utilization?
  • How is demand shifting digitally?