Taking over a painting business: how to evaluate the customer portfolio?

Why the customer portfolio is crucial in a painting business

In the painting sector, the barrier to entry remains low. Any craftsman can set up with a vehicle and a few tools. Competition is intense, prices are under pressure.

The real value of a painting business therefore does not lie in physical assets, but in its established clientele and reputation. A solid customer portfolio guarantees a regular workflow and reduces business risk.

Before any takeover, analyse this portfolio in depth. It determines future profitability and justifies the acquisition price. To understand which types of craft businesses attract the most buyers, read our article on the most sought-after craft businesses in French-speaking Switzerland.

The key indicators to analyse

To properly evaluate the customer portfolio of a painting business, you must examine several essential metrics. These indicators reveal the quality, stability and transferability of the clientele.

Four dimensions structure your analysis:

• The distribution between customer segments
• Recurrence and loyalty
• Turnover concentration
• The nature of contracts and their predictability

Each indicator provides complementary insight into the risks and opportunities of the takeover.

Distribution between private and professional customers

Private customers (B2C) often generate higher margins, but mandates remain one-off and unpredictable. Renovations, refreshments: volume varies according to seasons.

Professional customers (B2B), property management companies, general contractors, developers, offer more regularity. Volumes are larger, but margins are compressed and payment terms longer.

A balance between B2C and B2B reduces dependence on a single segment and stabilises cash flow. Check the current turnover distribution.

Recurrence rate and loyalty

Recurring customers constitute the stability foundation of a painting business. They testify to service quality and reduce acquisition costs.

Request the complete customer list with intervention history over 3 to 5 years. How many return regularly? What is the frequency of mandates?

A high recurrence rate (above 40% of turnover) indicates a loyal clientele and limited business risk. Conversely, excessive dependence on new customers signals potential instability after the takeover.

Turnover concentration

Turnover concentration on one or two large customers represents a major risk. If a single customer generates more than 20-30% of turnover, the departure of this customer immediately weakens the business.

Analyse the distribution: how many customers represent 50% of turnover? 80%? The broader the base, the more diluted the risk.

This issue relates to dependence on the owner. Read our guide on how to take over a business where everything depends on the outgoing owner to understand relational risks.

Nature of contracts and predictability

Framework contracts with property management companies, public administrations or general contractors provide visibility. Check their duration, renewal conditions and termination clauses.

Caution: some contracts are linked to the seller's person and do not transfer automatically. Ask whether key customers have confirmed their intention to continue after the takeover.

Also examine the current order book and pipeline. A well-filled order book facilitates the transition and secures the first months of operation.

Questions to ask the seller

Prepare a precise checklist for your due diligence:

• Complete customer list with turnover per customer over the last 3 years
• Annual retention rate
• Origin of new customers (word of mouth, advertising, subcontracting)
• Average payment terms by segment
• History of disputes or unpaid invoices
• Commitment of key customers to continue after the takeover

Negotiate a transition period during which the seller personally introduces you to strategic customers. This handover reduces the risk of departure.

Evaluating portfolio transferability

Not all customer portfolios transfer easily. Strong personal relationships increase the risk of departure after the takeover.

Analyse differentiation: does the business offer specialisations (decorative painting, facades), certifications or guarantees? The more reproducible the service, the smoother the transition.

The support period remains crucial. As with retaining key employees, the seller's presence reassures customers and facilitates the transfer of trust.

For thorough due diligence, get support from the Leez expert network (fiduciaries, lawyers).

Practical evaluation checklist

Operational summary for your analysis:

• Request customer list with turnover and detailed history
• Analyse B2B/B2C distribution and margins by segment
• Check turnover concentration
• Examine framework contracts and their transferability
• Evaluate recurrence rate over 3-5 years
• Meet key customers during the transition
• Check reputation (online reviews, references)
• Analyse payment terms and unpaid invoices

To estimate the overall value of the painting business, use the Leez valuation tool.

Evaluating the customer portfolio is a determining element in taking over a painting business. The quality of the clientele, the recurrence rate, the distribution between private and professional customers, and the concentration of turnover give you a clear vision of the stability and potential of the activity.

Take the time to analyse each indicator in depth, ask the seller the right questions, and honestly evaluate the transferability of customer relationships. A well-structured portfolio with recurring contracts and a diversified clientele represents a major asset that secures your investment.

Are you looking for a painting business to take over in Switzerland? Discover the craft businesses for sale on Leez and access detailed information on their clientele, turnover and structure. For any questions about valuation or due diligence, our expert network can support you in your takeover project.