This well-established graphic design and pre-press business has been operating for over twenty years. Its services include graphic design, pre-press, proofing and print management.
The staff members are experienced and complete almost all the design and other work. The owner is mainly involved in providing strategic overview and attending occasional customer meetings. This leaves the owner free to focus on his other business interests.
This business provides its services to a single customer with whom it has traded over a decade. The operations of the customer and this business are closely intermeshed. While the customer focuses on sales and service, this business looks after design and print management.
There are numerous factors that strongly bind the customer to this business. Firstly, all artwork files and designs are held by this business. Secondly, the business and the customer work on a high volume of jobs together and there is an extensive history of designs and working files. Attempting to change designers would be a massive, complex and expensive undertaking. Thirdly, the business has well entrenched systems in place to ensure that the customer’s needs and deadlines are met. Overall, the arrangement is solidly entrenched, working well and very beneficial to both the business and the customer.
The customer pays for work in advance. As such, this business has very strong cashflow. For the 2018 financial year, this business achieved sales of $368,000. Net profit (EBITDA) was $214,000 for the same period.
This business could be a great purchase for someone with graphic design or publishing experience. It could also make an excellent acquisition for another business operating in the industry, e.g. a printing company.
Currently, all of the products are printed externally using sheetfed offset printing machinery. The vendor estimates that the value of print work produced annually is above $2,000,000 per annum. There may be an opportunity for a purchaser who has existing offset printing capability to bring this work in-house.
This quality business is being offered for sale at $350,000.