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.
