letterworks
Premium Subscriber
Hello everyone. I'm reposting this in the "open to all section as I now know its where more of the conversations are. You can look up my original post, my first post here.
As per the original post, my background is acrylic fabrication for over 20 years most of those with CNC cutting as part of our offered services.
I have the opportunity to buy a local to-the-trade dimensional letter / sign company. The name has a long history, back to the 80's and the local reputation particularly for it's painting is good. However, it sold in 2019 to a 3-way partnership that is in a bad state (now worse) and the sales volume is about 1/2 what it was in 2019 and earlier (now 1/4). Since I work with some sign shops myself, there is customer overlap and I can ask them about this business too. I think, with new life, the reputation is probably salvageable. Price (if the ownership all agrees) will be "assets at auction" level or a little higher. It will come with a location that is needed for the paint booth but isn't ideal but I think is still sort of cheap as the market has been going sky high here recently.
I am coming from a bit the opposite side of the business. I currently do the basic letter cutting for the guys that are slapping latex on Styrofoam and putting the letters 20-30 ft up, or sintra letters that are left unpainted or that get sent to others for painting to a letter finish that this business normal produces. Occasionally I do push thru backlit letter jobs too with alupanel backs. I have been the cheap and quick alternative to the company for sale for a mostly very local sign client base.
The dimensional letter company has 1 full time employee and the overworked managing owner (a old-school hand sign painter and pinstriper). He says he could stay to paint only 1-2 days a week. The existing employee might stay but might more into more admin role while training her replacement. I am going to have a sit down with her next week with the owners permission.
Since I last looked at the business last year, I have played with painting a little and edge sealing and it's still the labour intensive job I thought it was....hopefully I can move more to Acrylic letters where prep is much less.
In my original post, I was looking for general feedback on why guys and gals here see as the opportunities in this market particularly with Gemini as the 500lb gorilla of the industry.
I'm more comfortable that this is a worthwhile business addition if the price is right, but I am still curious as to what types of CNC cut letters would be most commonly shopped for? Painted (custom colors) versus black / white that could be just colored acrylic (or sintra). Metal versus plastic letters, etc. This new business probably would fall below more lettering considered "architectural", but they do have some 10K+ orders and that's bigger $ than I generally see, and despite Gemini they can and do compete and the feedback I have (from shared customers) is that my ownership would be a positive.
Truth be told, it's a mutual customer that is driving the possible purchase this time at that is because the managing owner is burnt out and about to shut the place down....no one seems likely to step in except me.
As per the original post, my background is acrylic fabrication for over 20 years most of those with CNC cutting as part of our offered services.
I have the opportunity to buy a local to-the-trade dimensional letter / sign company. The name has a long history, back to the 80's and the local reputation particularly for it's painting is good. However, it sold in 2019 to a 3-way partnership that is in a bad state (now worse) and the sales volume is about 1/2 what it was in 2019 and earlier (now 1/4). Since I work with some sign shops myself, there is customer overlap and I can ask them about this business too. I think, with new life, the reputation is probably salvageable. Price (if the ownership all agrees) will be "assets at auction" level or a little higher. It will come with a location that is needed for the paint booth but isn't ideal but I think is still sort of cheap as the market has been going sky high here recently.
I am coming from a bit the opposite side of the business. I currently do the basic letter cutting for the guys that are slapping latex on Styrofoam and putting the letters 20-30 ft up, or sintra letters that are left unpainted or that get sent to others for painting to a letter finish that this business normal produces. Occasionally I do push thru backlit letter jobs too with alupanel backs. I have been the cheap and quick alternative to the company for sale for a mostly very local sign client base.
The dimensional letter company has 1 full time employee and the overworked managing owner (a old-school hand sign painter and pinstriper). He says he could stay to paint only 1-2 days a week. The existing employee might stay but might more into more admin role while training her replacement. I am going to have a sit down with her next week with the owners permission.
Since I last looked at the business last year, I have played with painting a little and edge sealing and it's still the labour intensive job I thought it was....hopefully I can move more to Acrylic letters where prep is much less.
In my original post, I was looking for general feedback on why guys and gals here see as the opportunities in this market particularly with Gemini as the 500lb gorilla of the industry.
I'm more comfortable that this is a worthwhile business addition if the price is right, but I am still curious as to what types of CNC cut letters would be most commonly shopped for? Painted (custom colors) versus black / white that could be just colored acrylic (or sintra). Metal versus plastic letters, etc. This new business probably would fall below more lettering considered "architectural", but they do have some 10K+ orders and that's bigger $ than I generally see, and despite Gemini they can and do compete and the feedback I have (from shared customers) is that my ownership would be a positive.
Truth be told, it's a mutual customer that is driving the possible purchase this time at that is because the managing owner is burnt out and about to shut the place down....no one seems likely to step in except me.
