Niki Katz, our Adelaide Business Broker talks about selling a Food Manufacturing business and runs through what are the important considerations that need to be kept in mind when selling in this industry.
Important Considerations
It is good to do an overall review of the business, particularly if the seller is retiring and it is a family business. Considerations such as:
- When producing food – where is the supply chain coming from? How consistently reliable is it?
- Is there a good management structure?
- How long have staff been there and how much do they understand the business and how it functions?
- Good stocktake.
- Health and safety (eg floor, factory – making sure is compliant).
- Understanding the customer and supplier base (not just one big customer and supplier).
- Getting plant and equipment independently valued is important.
Process of finding the buyer
Nikki explains how in a particular recent sale of a food manufacturing business, she did a direct market approach in our database.
As Adelaide is quite small, Nikki knew who to connect with and preferred to take the direct approach to secure a sale. In this particular example, Nikki wanted to make sure the buyer kept within the culture of the business, especially as it was a family business. Quality and Quality assurance is important to customers. Especially their position in the supermarkets.
Buyer Demand
Nikki has sold quite a few of these businesses. There is a large range when you are talking about Food Manufacturing – different sectors, customers, types etc. Experience in production as a buyer is key.
Do you have an Food Manufacturing business that you are thinking of taking to market? Click here to book a complementary consultation with a market expert.
