Sign Business for Sale: Buyers’ Checklist
Sign Business for Sale: Buyers’ Checklist
Entrepreneurs looking for lucrative business ownership opportunities should consider buying a sign business. Statistics show the global printed signage market is a $40 billion industry, predicted to climb to more than $41 billion by 2026. Boosted by necessity at the start of the pandemic, the sign industry continues to be in demand as a business-to-business industry. If you are looking for a sign business for sale, there are certain things to look for as you shop.
What to Look For
Before you buy a sign making business for sale, make certain it has a good customer base, is showing growth, and there’s profit potential. Search online for a sign business for sale and once you narrow your options, it’s important to thoroughly research the choices in front of you.
For example, are you looking for a shop that creates signs or will you also be looking for a sign installation business for sale? Are you open to considering a digital signage company for sale? Digital signage is performing very well in the marketplace, expected to grow to an $8 billion dollar industry here in the United States, by 2028. Or perhaps you’ll consider putting all these services together under one roof.
You’ll need to understand why an existing business is up for sale. If the owner is selling due to a change in lifestyle like retirement, that’s quite reasonable. However, there are concerns if the businesses is in bad financial shape—buyer beware.
You will want to look at the business tax returns, balance sheets, cash flow statements, sales records, and accounts payable. Having a qualified business accountant to help sift through the mounds of paperwork and provide you a clear understanding of this financial investment is a good decision. It is also recommended to get guidance from a CPA and business lawyer.
Determining Profit Potential
This is a business and you are looking to make money. If you are trying to determine the profits of a particular sign business for sale and future profitability, look for an income statement. Itshows the totals of a company’s revenues and expenses. This includes all layers of profitability and is termed, “EBITDA” or earnings before interest, tax, depreciation and amortization. It shows gross profit and operating profits.
If financials look to be in good order, study the business plan, look at the competition, existing debts, location, brand marketing, inventory and upgraded equipment.
Consider talking with current customers and employees to get a realistic picture of the business.
Are You Ready for Ownership?
There are many questions you need to answer before you buy. Can you afford this? This is a large investment, are your financials in order? Will you need a business loan or investors? Do you have enough liquid assets to stay afloat as you take over the business? From a day-to-day operations perspective, what role will you play? Are you owner/operator? Shop manager? Then there’s the issue of your level of expertise. Is customer service, sign creation and installation in your wheelhouse or will you be dependent on current employees to train you until you get up to speed?
There will also be a point when a business attorney will need to be hired to get you through the due diligence, possible offer and closing. The attorney will ensure the business is in good order including current business licenses and permits, leases, zoning laws, and transfer of title.
Possible Checklist of Services
To get the most bang for your buck, you want to offer a variety of marketing services to offer your business clients. Your checklist may include: graphics, exterior and interior signage, vehicle graphics, digital signage, web development, flyers and direct mail options promotional products, apparel, banners and displays. You may consider offering sign refurbishment and repair as well as installation. Expansive options give you better chances of growth.
The Image360 Franchise Opportunity
Sign business opportunities are plentiful especially when you consider becoming an Image360 Franchise Member. Image360 is a one-stop shop for businesses in your community. As a Franchise Center Owner, your offerings include design, production, installation and service with graphics, signage and displays.
You will benefit from training and on-going support by franchise industry leaders. Plus, you will have the opportunity to use our proven business model with a respected brand name in the sign industry. At Image360 you benefit from the latest industry innovations to keep you competitive and increase your profit potential. If you are ready to start franchising with Image360 through purchase, conversion or add-on, submit this form and we’ll be in touch.