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?