Printer Sales & Service Company

by a searcher from Baker College of Muskegon

2 years ago

Last week I came across a printer sales and service company for sale. They work with government agencies, schools, doctor offices, hospitals, etc mostly.

I have reviewed the CBR and the company looks solid. I can see the ability to grow it through adding additional services. 

I have two primary questions:

Are there any immediate red flags for the industry? Despite the move to digital, printing doesn't seem to be going away.
We are looking for a minority shareholder to come in to add additional cash liquidity if we move forward. We have 10% downpayment ready and plan to SBA finance the remaining. We could need an additional###-###-#### %. How would you structure a deal with a shareholder?

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7 comments

searcher from ESADE - ESADE Business School

I acquired a spanish company in the printing industry by the end of###-###-#### Happy to talk and give you some insights. My email is: --@----.com

2 years ago | like reply | 0 likes

searcher from INSEAD

Hi Zachary - I signed LOI with a similar company in Central Europe. The main risk my investors see is the decline of print accelerated by COVID-19. The decline is there indeed but as you mentioned we are becoming paper-lite, not paperless. More importantly, my target (and many others) also lead the adoption of digitalization and document management systems and provide software solutions + full IT outsourcing... market that is growing 10 and more % annually. For SMEs it usually doesn't make sense to do this in-house and once you have a contract there is an automatic renewal. The switching costs are high as far as you don't make your customer really angry. These companies are also in a great position to shift into full HAAS, a booming opportunity these days.

2 years ago | like reply | 0 likes

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