Professional & B2B Services · Buyer guide

Buying a Managed Print & Office Technology business

Published · Reviewed by The Diligence Standard Team · Updated

a Managed Print & Office Technology 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

Recurring service contracts, lease/finance commissions, equipment placements, consumables and technician routes determine value.

Risks to test

  • Manufacturer/dealer authorization
  • Lease residual/commission obligations
  • Tech dependence
  • Customer concentration
  • Aging installed base
  • Owner sales

Evidence to request and reconcile

  • Contract/device roster
  • Service tickets
  • Dealer/vendor agreements
  • Technician payroll
  • Customer retention
  • Commission/lease reports

Decision questions

  • What contracts/devices transfer?
  • What manufacturer approvals are needed?
  • How profitable is service after parts/labor?
  • Who owns key accounts?
  • What installed base needs replacement?