Options When Selling or Buying a Sign Company

Editor’s Note: For more specifics on each option for buying or selling a sign company, see signsofthetimes.com/fargo.

LAST YEAR, I SOLD my print and signshop, a business that had been the centerpiece of my career and life. For years, I’d envisioned keeping it forever — or at least until I could no longer manage it. Then, the pandemic hit. Navigating that crisis reshaped my perspective on the risks, responsibilities and the sheer endurance needed to run a business. The lessons from that challenging time ultimately sparked my decision to sell. Here’s the journey that led me to this transition, as well as the options I considered and the experiences that shaped my path. Perhaps some of you can relate to this story.

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THE QUESTION
OF WHY AND WHEN

Deciding to sell a business you’ve built can be a complicated and even fraught process. Some may feel they’ve earned the chance to relax and enjoy life, while others face burnout, health issues or changes in the industry landscape. For me, the unpredictability of the pandemic stirred a desire for more stability and peace in my life. Here are a few common reasons compelling owners to sell:

• Desire for new challenges or more personal time.
• Shifts in health or family obligations.
• A chance to capitalize on peak profitability.
• Reluctance to continue reinvesting in the business.

However, if you’re considering this transition, remember that it is in fact more important to be pulled toward something rather than just trying to get away from something else. Whether it’s the lure of travel, time with family, or new hobbies, having a “magnet” for your next chapter makes the change more meaningful and enjoyable.

In my case, the decision to sell wasn’t just about the desire to delete my responsibilities; it was also the excitement of what lay ahead. Small business ownership ties us so closely to day-to-day demands that we sometimes forget to ask what we want for ourselves. I reached the point where I was ready to explore those possibilities.

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CONSIDERING YOUR EXIT
STRATEGY: SIX OPTIONS

The next question was how to sell. With small, privately-owned companies, selling isn’t as straightforward as just finding a buyer and signing on the dotted line. I evaluated six main options, each with its own benefits and challenges:

1. Sell to a Family Member or Employee: This can be ideal if there’s a trusted family member or long-term employee willing and able to buy the business. Benefits include continuity for staff and an easy transition, though risks include potential strain on personal relationships.
2. Use a National Franchise’s Assistance: If your shop is part of a franchise, you may have built-in support during the sales process. Franchisors often help owners sell to new or existing franchisees, streamlining the process. Even as an independent business, joining a franchise to prepare for a sale might enhance value and ease the transition. Additionally, franchises often have “matchmaker” programs that introduce independent sellers to buyers who are looking for a franchise operation.
3. Work with a Local Broker: Brokers offer experience and marketing resources to help sell. However, their services typically come with a 5-10% commission, making this option costly. Yet, for owners unfamiliar with the sales process or lacking industry contacts, brokers can be valuable tools for selling your shop.
4. Engage a Mergers & Acquisitions (M&A) Specialist: An M&A advisor in the print and sign industry brings industry knowledge and ready-to-buy contacts. Keep in mind though that they tend to focus on larger businesses, so they may be less interested in shops with less robust revenue.
5. Sell to a Competitor: A competitor might pay more, thanks to synergy benefits, and can reduce potential fees involved in a sale. However, sharing business information with a competitor requires mutual trust and nerves of steel, and deals sometimes come with “earn-out” agreements, where a portion of the payment depends on post-sale performance. This might add additional and unacceptable risk to the deal.
6. Close Up and Liquidate: For some owners, liquidating assets is the best option, though it’s often the least profitable or enjoyable. This route is generally a last resort, chosen if other options don’t pan out.

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THE FRANCHISE ROUTE:
A SOLUTION THAT WORKED

Ultimately, I sold my shop through a franchise’s “matchmaking” program. Franchisors typically handle everything, from valuations to matching you with a qualified buyer, usually at no cost to the seller. They understand the industry, making the sale seamless and professional without the hefty fees.0

Through this process, I was able to negotiate a fair deal that respected my employees’ futures while achieving my financial goals. The support of the franchise gave me confidence in the transition, knowing the buyer would have resources to maintain stability in the business.

Choosing this option meant I could sell without paying the high costs of a broker or dealing with the uncertainty that often comes when selling to a competitor. I had peace of mind knowing that the franchise’s system would help support the business long after I left, which mattered greatly to me.

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PREPARING YOUR
BUSINESS FOR SALE

To ensure the best possible sale, I took several steps to increase my company’s value. This preparation is akin to staging a home — creating an inviting environment that signals organization and opportunity to buyers.

• Physical and Organizational Improvements: Clean up and organize every part of your shop. I enlisted my team in an ongoing cleanup effort, transforming our workspace into one that reflected pride and professionalism. Additionally, I created an accountability chart to clearly define each employee’s role and responsibilities.
• Asset Documentation: Listing equipment and other assets shows buyers what they’re purchasing. A spreadsheet of our assets, with information like purchase dates, serial numbers and replacement value helped me demonstrate the shop’s worth.
• Financial Transparency: Most buyers will ask for at least three years of financials, including tax returns, balance sheets and income statements. Prepare an owner’s compensation spreadsheet that includes all benefits and expenses, as buyers will evaluate offers based on a multiple of the owner’s adjusted earnings.
• Detailed Operating Procedures: Buyers appreciate documentation that shows how day-to-day tasks are handled. I created process sheets for key activities, which added structure to our operation and underscored that the business was well-run. This preparation not only smooths the transition but also strengthens buyer confidence.

These preparations helped me present a streamlined, organized operation that was easy to evaluate and inviting to buy. Making these changes showed buyers that the shop’s success was rooted in solid systems, not just my personal oversight.

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THE EMOTIONAL
TRANSITION: LETTING GO

As owners, many of us spend decades in our businesses, forming close bonds with our teams, clients and the community. Transitioning out requires detachment — a mental shift from “ours” to “yours.” During the training period, it was challenging not to step in, even when the new owner made decisions I might not have. Yet the healthiest approach is to let them take the reins, even if that means things unfold differently from the past.

My experience selling to a franchise rather than a competitor or a stranger meant I could leave feeling respected and confident in the new management. This made the separation easier and more positive, allowing me to focus on my next chapter without looking back. When you’re deeply connected to a business, it’s not only about transferring operations; it’s also about honoring that journey and giving yourself the permission to move forward.

Letting go takes time. The new owner will bring their own ideas and systems, and you must be comfortable with the fact that things will change. The process reminded me that my job wasn’t to keep looking back, but to pave the way for what’s next in my own life.

LESSONS LEARNED AND
ADVICE FOR PROSPECTIVE SELLERS

• Know Your Motivations: Make sure your reasons for selling are clear and that you have something meaningful pulling you forward. This can make the journey less daunting and more fulfilling.
• Evaluate All Options: Look at the various ways to sell your business and choose what feels right. You might change direction as you go, but evaluating each option helps you make an informed choice.
• Prepare, Prepare, Prepare: Cleaning up operations, getting financials in order and setting clear organizational structures will make the sale smoother and help you maximize your asking price.
• Keep Your Distance Post-Sale: Mentally and emotionally, it’s best to let go once the sale is complete. Trust the new owner’s vision and focus on what’s next for you.
• Don’t Be Afraid to Ask for Help: Selling a business is a complex process, and having advisors — whether legal, financial or industry mentors — can be invaluable. They’ll help you avoid pitfalls and ensure that you’re making the best decisions for your unique situation.

Selling my business was the culmination of years of dedication, and I’m grateful to have found a method that allowed me to exit on my own terms. If you’re a signshop owner considering a sale, remember: It’s a journey, and it’s yours to shape.