Commercial Sign Manufacturing and Installation Company
This article presents an acquisition strategy for a commercial sign manufacturing and installation company specializing in indoor and outdoor signage for municipalities, healthcare systems, retail chains, real estate developers, industrial parks, and educational institutions. The company offers turnkey services including design, fabrication, permitting, installation, and maintenance. With in-house CNC routers, vinyl printers, and welders, the company produces ADA-compliant signs, monument signs, LED-lit signage, pylons, vehicle wraps, and interior directional systems.
The company generates $6.6 million in annual revenue and $1.34 million in adjusted EBITDA. Its client base includes 5-year contracts with school districts and cities for signage replacement and maintenance, as well as ongoing work with retail developers and multi-unit franchisees. About 65% of revenue is recurring or repeat business, while 35% comes from one-time custom signage projects.
This business is well-suited for SBA 7(a) acquisition due to its diversified customer base, equipment-heavy asset profile, experienced team, and strong margins. Post-acquisition growth can be achieved through expanding digital signage offerings, selling maintenance packages, securing more municipal contracts, and acquiring smaller sign shops lacking fabrication capacity.
Proposed SBA 7(a) Deal Structure
With reliable cash flow and significant equipment value, the following SBA 7(a) structure is proposed:
Purchase Price: $5.36 million (4.0x EBITDA)
SBA Loan: $4.02 million (75%)
Buyer Equity Injection: $536,000 (10%)
Seller Financing (Subordinated): $804,000 (15%) amortized over 6 years with 12-month interest-only period
Deal safeguards:
Seller note subject to 25% clawback if more than 20% of municipal maintenance contracts are canceled within the first 6 months
Seller receives a $75K bonus if buyer secures $1M in new recurring maintenance business within 12 months
Seller remains as design consultant and client relationship advisor for 9 months post-close
Customer Segmentation and Revenue Streams
Customer mix:
Municipalities (cities, counties, transit): 28%
School districts and universities: 18%
Retail and franchise groups: 17%
Medical campuses and hospitals: 14%
Industrial parks and warehouses: 11%
Real estate developers and property managers: 9%
Event venues and nonprofits: 3%
Revenue segments:
Custom signage design and fabrication: $2.8M
Permitting, installation, and site work: $1.7M
Maintenance contracts (repairs, lighting, cleaning): $1.2M
Vehicle and fleet wraps: $530K
ADA and directional signage: $370K
Recurring maintenance contracts typically include quarterly or biannual inspections, lighting replacements, graffiti removal, and emergency repair. Contracts range from 1–5 years and are typically renewed automatically based on performance.
No single client represents more than 7.4% of revenue. The top 50 clients account for 63% of gross billing.
Team, Equipment, and Production Capabilities
Personnel:
3 graphic designers (Adobe Suite, CAD, CorelDraw)
5 fabrication staff (welding, CNC, large-format printing)
4 installation techs (OSHA-certified, bucket truck operators)
2 permit coordinators and project managers
2 customer service/account managers
1 general manager
Facility:
15,000 sq ft owned facility with:
CNC routing and welding bay
Vinyl print and lamination room
Paint booth and curing station
Assembly and quality control floor
Warehouse and parts inventory
6 truck dock installation bays
Key equipment:
2 CNC routers (4'x8' and 5'x10')
3 wide-format printers with laminators
2 plotters
TIG and MIG welding units
Boom truck with 45’ vertical reach
2 service vehicles with lift kits
Total equipment FMV: ~$850K
CapEx needs:
Replace one boom truck within 18 months: $95K
Upgrade one printer to UV-capable model: $36K
Install customer self-service portal for design approvals: $14K
Sales Channels and Market Expansion
Sales acquisition:
Public bids for city and school signage programs
Direct relationships with commercial developers and architects
Strategic partnerships with national franchise groups
Strong SEO presence for “[city] sign installation” and “[industry] signage solutions”
Marketing budget: ~$55,000 annually
Growth levers:
Hire outside sales rep to target regional healthcare and franchise groups
Launch a turnkey “Sign-as-a-Service” model with bundled install + maintenance + refresh every 3 years
Acquire one or two small sign shops to consolidate design and fabrication capabilities
Expand into digital and interactive signage offerings (touchscreens, menu boards, kiosks)
Create recurring revenue through annual signage audit and maintenance subscriptions
Financial Summary
Revenue: $6.6M
COGS (labor, materials, parts): $3.18M
Gross Profit: $3.42M
SG&A: $2.08M
Adjusted EBITDA: $1.34M (20.3%)
Margins by line:
Fabrication: 55–60%
Installation: 45–50%
Maintenance: 65–70%
Vehicle wraps: 60%
ADA/directional signage: 72%
Billing varies by contract type—municipal accounts often pay net-30 via PO, while commercial clients pay deposits upfront with final billing post-install. Maintenance contracts are invoiced quarterly or semi-annually.
Licensing, Compliance, and Insurance
Licensed general sign contractor in 3 states
OSHA 30 certified installers
DOT-compliant boom truck fleet
City bonding for public bid contracts
Fully insured: $2M GL, $1M auto, $1M workers comp, $1M umbrella
All permits, inspections, and site work are handled internally through an established permitting department. The company has a 5-year clean safety record with no workers comp or liability claims.
Working Capital and Transition Budget
Payroll float: $140K–$155K
Equipment CapEx: $130K–$145K
Seller consulting and transition planning: $40K
Sales team expansion and CRM upgrades: $25K
Client-facing portal build-out: $14K
Ideal Buyer Profiles
Construction, facility maintenance, or contractor service companies
Operators in print, marketing, or large-format industries seeking vertical integration
SBA-eligible buyers with project management and B2B sales experience
PE-backed service roll-ups seeking durable cash flow and physical asset base
Post-Close Execution Plan
Meet with top 50 clients and bid managers to ensure continuity of municipal work
Audit design and production timelines to reduce turnaround and increase margin
Cross-train fabrication and install staff to improve scheduling flexibility
Begin acquisition targeting sign shops with <$1M in revenue for tuck-in
Roll out bundled maintenance and signage audit program to all commercial clients
Conclusion
This commercial signage company offers attractive gross margins, physical asset value, long-term client contracts, and a skilled technical workforce. Its in-house fabrication capabilities, permitting infrastructure, and municipal contract track record make it difficult to replicate or displace. SBA 7(a) financing provides an ideal acquisition entry point for a buyer looking to scale a project-based business into a recurring revenue platform. By expanding digital signage offerings, densifying regional routes, and layering on SaaS-like maintenance models, this business becomes a predictable, asset-backed revenue engine with substantial upside.
