Share This Info:  

Buying Secrets For A Quick Printing Business For Sale

It might be called quick printing, but that doesn’t mean the prospective buyer of a business in this industry shouldn’t take his or her time examining a company’s suitability as a purchase. And there are a few concepts that should be understood by a prospective buyer of a printing business for sale. They include:

Related Businesses

There's a benefit to owning a printing operation that also produces large format prints --posters and  architectural drawings are examples--and offers design capabilities, mail box rentals and other services. It means the company is prepared with a variety of ways to serve most every customer who walks through the door, even just to get copies made. With other business services available, the print business can increase revenues and profits with its present base of customers.

But there's no advantage to spreading investments over a number of sub-enterprises if each doesn’t show a profit. Make sure the extra equipment and employees are making contributions that add to the company's bottom line.

Changing Competitive Environment

An economy in flux, the very situation we currently are experiencing, might mean there are problems with a printing business for sale. Some customers, looking to reduce expenses and take advantage of special sales on office equipment,  will set up their own in-house printing capability. It’s useful to ask the seller of a business with declining revenues whether the cause is current customers bringing less work, or a loss of accounts.

It's an important distinction. It’s preferable if much of the slowdown is a consequence of the first problem--less business from current customers. As an improving economy restores the revenues collected by customer businesses, they will increase their need for services from the printing business for sale.

But a healthier business climate won"t be as beneficial for the print company with a shrunken account list. It means former customers have gone out of business or made other arrangements to get their print work completed. That business won’t come back.

Knowing the Numbers

It’s useful for the prospective buyer of a quick print business to be aware of this industry average: earnings before interest, taxes, depreciation and amortization (EBITDA)usually range between 10% and 20% of gross revenues.

A company showing earnings above that range needs to be examined closely. The seller might be right to ask a premium for the business because of its profitability. But the reason should be obvious, such as a lease with below-market rent.

It's also possible that a seller is not revealing all of the costs associated with doing business, a good reason for a buyer to pass on the offering. For example, are family members working in he business but not shown on the payroll?

Another key figure to know is the pricing rule of thumb which values a printing business for sale at 50% of it annual revenues. Like most valuation rules, of course, the formula is a starting place to determine an appropriate selling price.

Profitability at the lower end of the suggested range might translate to a price below the rule-of-thumb number. Also depressing the value would be the need to replace expensive equipment or to move the plant because the current lease will soon expire.

However, the business with annual revenues of $500,000 might merit a price higher than the $250,000 indicated by the rule of thumb, if much of the equipment was acquired in the last few years. Or if the seller is planning to carry back 30% or 40% of the purchase price.

Following these insights will help the prospective buyer of a quick printing business for sale to make an intelligent and profitable decision.

About the Author: Peter Siegel, MBA, has provided consulting for buyers and sellers involved in deals on a printing business for sale - as well as other sectors of the small and mid-sized business market--for 25 years. The site he launched in 1994,, has become a leading online marketplace for business opportunities and for the services provided to buyers and sellers. Peter Siegel can be reached at 925-785-3118.

Categories: BizBen Blog Contributor, How To Buy A Business

  Helpful Resources To Assist In Selling And Buying California Businesses
Chris Seaman, Business Broker: Southern California

Founded in 1994, First Choice Business Brokers has accelerated to become one of the most successful Business Sales Organizations in the world. Our team of agents have gone through extensive training to become experts in the field of business brokerage. Call Chris at 858-578-4111 for more info.

Helen Yoo, New Century Escrow - Escrow Services In Southern California

New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Michael Floorman, Business Brokerage, BTI, San Francisco Bay Area

Business Team, San Jose (Campbell) located in the Pruneyard Towers at Bascom and Hamilton. Established in 1981 Business Team with over 6600 sales to date has 1000 business listings to choose from, paid Google advertising. We offer highly trained and experienced professionals.

Shalonda Chappel-Pilgram: Escrow & Bulk Sale Services - Southern California

Escrow services to brokers/agents, sellers, & buyers. Established 43 years. Extraordinary service. Experienced with handling difficult transactions. One stop for all your escrow needs: Bulk sales, lien searches, UCC searches, liquor license transfers, publishing & recording services. 951-808-3972.

Bob Baumgarten, Business Broker: Southern California

National Business Brokerage is a full service brokerage company that has been serving buyers and sellers of Southern California businesses since 1994. We are dedicated to providing the highest standards of professional service for our clients. Phone Bob direct at 949-588-8727.

Diane Boudreau-Tschetter: Escrow & Bulk Sale Services - CA

California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.

Janet Carrera: Escrow & Bulk Sale Service - SF Bay Area

Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.

Rob Hartman: Business Broker, SF Bay Area

Business brokerage services in the SF Bay Area. I bring skill, integrity and energy to all of my clients and our projects. I'm accustomed to working with a wide variety of clients and their businesses; large or small, simple or highly complex. Get a free consultation by phoning 650-279-3097.

  Related Articles, Events, Blog Posts, Discussions, Videos, Interviews
If You Plan To Offer Seller Financing: 3 Things Owner Sellers Need to Know

When selling your business, offering seller financing is a great way to help your business standout from others on the market and it is also a good strategy to consider that can help you close a sale. Peter Siegel, MBA (BizBen ProSel Program & Financing Expert) explains. Reach him at 925-785-3118.

Why Deals Fall Out: Unrealistic High Asking Prices Are Usually The Reason

The unfortunate truth is that approximately 50% of all small business sales transactions fall out. While failed transactions can happen for a many reasons, Peter Siegel, MBA (BizBen Director & Business Purchase Financing Expert) discusses the main reason deals fall through; steep asking prices.

Financing Advice: Showing Add Backs To Get Business Acquisition Financing

When seeking business acquisition financing, it helps to review a seller's addbacks as a source of funding to service the debt service. But explain them correctly. Peter Siegel, MBA business acquisition financing expert and advisor at 925-785-3118 covers this topic on financing a business purchase.

Selling My Small Business: What Items Should I Have Ready To Be Successful?

When selling a small to mid-sized business, owners should have their paperwork and financial information ready to go! They should also have a short business plan of past history, current operations, and potential for the future. In this BizBen Discussion several advisors and intermediaries weigh in.

What Factors Are Considered In Valuing A Small Business? Advisors Weigh In

Valuing a small business is not guess work. It's not what some other businesses of the same type may have or may not have been sold for, it's not even what a business owner "feels" they want or deserve. It is a formula based on many factors. Peter Siegel, MBA from BizBen & others discuss this topic.

How To Determine Whether The Buyer For Your Business For Sale Is Sincere

A problem owners encounter when offering a CA business for sale is that not all so-called business buyers are qualified to make the purchase. It's frustrating and costly to waste time showing non-qualified buyers the business. Here are ways to identify time wasters so the focus is on real buyers.

Why Isn't My Business Selling? 6 Great Questions To Ask Yourself For Answers

It can take months, sometimes longer to sell a small business. Here are 6 questions from Peter Siegel, MBA (Business Purchase Financing Expert, ProSell Program Advisor with BizBen) at 925-785-3118 to ask yourself to help you determine why your small to mid-sized California business isn't selling.

Buy A Business Or Start From Scratch? 5 Key Differences For Business Buyers

Some buyers believe it's better to start a business from scratch rather than buy an existing enterprise. While this may be good advice in some cases, usually it's not the best strategy. Here are five tips to help a buyer make the right decision from from Peter Siegel, MBA (BizBen Director).

Escrow Services Diane Boudreau-Tschetter
Golden State Laundry System Laundry Business Brokers
Harry Sidhu SF Bay Area
Redwood Escrow Bulk Sale Services
Vlogs and Podcasts
Business For Sale California Stats
BizBen ProBuy Program
New Postings Reports On BizBen Sign Up
BizBen ProSell Program
California Educational Events Buying And Selling Businesses

BizBen - Where California Deals Get Done! 888-212-4747
7172 Regional Street #364 · Dublin, CA. 94568
BizBen · Copyright © 1994 - 2019, All Rights Reserved

Clost Login

Please confirm your registration by clicking the link we've sent to .

If you can't see it, please check your junk mail folder.

If you have any problems registering, or need assistance with your new BizBen User Account please phone BizBen Customer Support at 888-212-4747.

First Name:*
Last Name:*
Email Address:*
Confirm Email:*
Create Password:*
Confirm Password:*

You Are A:

Email Address:

500 New & Refreshed Detailed Postings Daily
Over 2500 Resources Available On BizBen
Since 1994. Where California Deals Get Done!
Selling Your Business To One Of Your Employees - A Good Idea? Pros And C...
Read More News
5 Myths About Selling A California Business: Best Tips For Sellers & Bro...
Read More News