B2B Signage and Visual Branding Company
This case study focuses on a niche B2B signage and visual branding company that designs, manufactures, and installs custom signage solutions for commercial clients across retail, medical, industrial, and nonprofit sectors. The business has operated for 20 years, with a strong regional reputation for reliable service, quality craftsmanship, and rapid project turnaround. Services include custom exterior signs, interior branded displays, ADA-compliant signs, vehicle wraps, monument signs, digital LED signage, and trade show displays.
With $3.1 million in annual revenue and $648,000 in adjusted EBITDA, the company has a diversified client base and hundreds of repeat customers, many with annual or semi-annual branding needs. About 70% of revenue is project-based, while 30% comes from ongoing maintenance contracts, sign refurbishments, or client reorder programs.
This type of business is ideal for SBA 7(a) financing due to its profitability, equipment-backed production model, diversified revenue streams, and high switching costs for long-term clients. However, buyer diligence must focus on backlog analysis, graphic design staffing, subcontractor risk, and margin erosion on fixed-bid projects. The deal can be structured to ensure a seamless client and staff transition with room for post-close growth through proactive reactivation campaigns and route-based installation expansion.
SBA 7(a) Deal Structure Proposal
A sample SBA loan structure for this acquisition could look as follows:
Purchase Price: $2.5 million (3.86x EBITDA)
SBA Loan: $1,875,000 (75%)
Buyer Equity Injection: $250,000 (10%)
Seller Financing (Subordinated): $375,000 (15%), 5-year amortization, 12-month interest-only
Protective covenants and incentives may include:
20% clawback on the seller note if signed backlog drops by more than 20% within 90 days post-close
Bonus kicker if reactivated clients exceed $500,000 in first-year revenue with seller assistance
Contractual agreement for seller to assist in all RFP-based work, trade group continuity, and referrals for 6 months
Client Base and Revenue Overview
The company services 400+ clients across:
Retail/multi-unit stores: 35%
Healthcare/clinics/hospitals: 20%
Light industrial/warehouse: 15%
Educational/nonprofit/government: 10%
Food and beverage/hospitality: 10%
Trade shows/event-based clients: 10%
Clients include regional retailers, clinic networks, warehouses, real estate firms, and event organizers. Services include both one-off fabrication/installation and account-based reorder volume (e.g., real estate offices ordering signs monthly).
Top 50 clients represent ~60% of revenue. No customer exceeds 7%.
Project size ranges from $3,500 (interior signage package) to $125,000+ (full-site exterior branding + wayfinding package). Buyers should:
Review current backlog (average: $400K–$500K/month)
Identify annual repeat clients for automatic reorder triggers
Map average sales cycle length (2–8 weeks from design to install)
Team and Operations Structure
Current team includes:
2 sales reps (base + commission)
2 graphic designers (full-time)
3 fabricators
2 vehicle wrap technicians
2 field installers
1 project manager
1 office admin
1 general manager
Production is done in-house for vinyl, acrylic, LED cabinet signs, and CNC-cut lettering. Large monument and pole signs are outsourced to trusted fabricators.
Post-close labor strategy should include:
Retaining sales reps via new commission tiers and quarterly bonus potential
Cross-training graphic designers on fabrication prep and design QA
Incentivizing field installers for multi-job days and upsell packages
Replacing or negotiating subcontractor rates for outsourced elements
Facility and Equipment
The business operates from a 6,000 sq ft facility:
Design studio and client meeting room
Fabrication area with CNC machine, vinyl printers, laminators
Wrap bay for vehicles
Storage for aluminum, vinyl rolls, substrates
3 branded vans for field installation and delivery
Lease: $5,200/month, 3 years left with option to renew.
Equipment value: ~$280,000. Fully owned. Includes:
Mimaki wide-format printer
CNC router
Lamination systems
Bucket lift trailer and wrap station tools
Shop air compressor and painting gear
No immediate CapEx required, though buyer should budget $10K–$15K for maintenance and $8K–$10K for software upgrades (e.g., Adobe Suite, design proofing, scheduling tools).
Revenue Composition and Margin Breakdown
Trailing 12-month revenue:
Total Revenue: $3.1M
COGS (materials, labor, install subs): $1.55M
Gross Profit: $1.55M
SG&A: $902K
Adjusted EBITDA: $648K (20.9%)
Revenue mix:
Custom signage projects: $2.17M (70%)
Maintenance and refurbishment: $360K (12%)
Vehicle wraps and fleet branding: $280K (9%)
Trade show/event signage: $180K (6%)
Retail product and banner sales: $110K (3%)
High-margin services include interior branding ($5K–$15K/project), fleet wrap bundles, and illuminated sign retrofits.
Sales and Marketing System
The company has a reputation-driven sales cycle:
Inbound requests from website + Google Ads
Repeat client orders via email or phone
Networking at commercial real estate and BOMA events
Partnership with design agencies and GCs for new build projects
Sales team uses spreadsheets and phone-based follow-ups. CRM is limited to QuickBooks and email tagging.
Post-close marketing levers include:
Implement CRM (e.g., Pipedrive, Zoho) to track leads, follow-ups, and RFQs
Reactivate dormant clients with service anniversaries or new offers
Launch campaigns to multi-location clients for signage audits and refresh packages
Use before-and-after photo galleries and 3D design proofs on website/socials
Legal, Risk, and Insurance
Business is fully licensed and bonded. No OSHA violations, employee disputes, or customer litigation.
Insurance coverage:
$2M general liability
$1M commercial auto
$1M property/equipment coverage
$1M umbrella
Buyers should confirm:
ADA compliance knowledge in design and install
Worker safety plans for rooftop installs
Licensing for electrical tie-in (subcontractor or vendor required)
Working Capital Needs
Payroll buffer: $60K
Sales process and CRM upgrade: $8K–$10K
Inventory restocking: $25K
Seller consulting/retention: $20K
Marketing push for reactivation: $15K
Ideal Buyer Profiles
Print/graphic services companies looking to vertically integrate sign fabrication
Entrepreneurs with construction or B2B sales experience
Marketing agency owners expanding into physical branding
Facility services companies adding on signage as a complementary vertical
Post-Close Execution Plan
Review and assign top client accounts and activate follow-up sequences
Retain sales and design staff with performance-based plans
Streamline quoting, proofing, and job costing into CRM system
Introduce quarterly account reviews with large repeat clients
Launch signage refresh audits to boost maintenance and replacement orders
Conclusion
This signage and visual branding business offers a compelling mix of project-based cash flow, repeat client reorders, and infrastructure that is both mature and scalable. With a strong equipment base and local reputation, a new buyer can capitalize on dormant demand, systematize client reactivation, and scale revenue through multi-location signage standardization. SBA 7(a) financing provides a low-cost acquisition path with the seller available to assist in strategic transitions. For buyers interested in creative services, visual identity, or B2B project execution, this acquisition has all the pieces for expansion.
