Who Usually Buys
- Larger food brands
- Add a product line and use their own distribution.
- Private investors
- Back a proven brand with a manager in place.
- Experienced operators
- Move in with plant skills and fund the deal with a bank loan and a seller note.
Inventory Needs Right Sizing
Ingredients, packaging and finished goods tie up cash. Heavy stock compared with earnings can break bank financing, and buyers may ask for a hard count before closing. Trim slow items before you list.
Who Buys From You
Grocers and distributors often drive a food maker's sales. When a few accounts carry more than about fifteen to twenty percent of revenue, buyers discount the price or leave.
Buyers also look at whether retail partners placed orders because of your brand or because of you personally.
Equipment, Kitchen and Lease
Mixers, fillers and cold storage need upkeep, and buyers may haircut depreciation add backs. A kitchen is hard to move, so the lease matters a great deal. Ask early what the landlord will say about an assignment, and read our lease guide.
Permits and Food Safety
Buyers ask for inspection history, food safety plans and the permits that cover your kitchen. Permits often belong to the owner, so find out early which ones the new owner must apply for and how long that takes.
Three Ps
Buyers pay top of range for People, Profit and Process. Can the plant run when you take a vacation? Written recipes, supplier terms and a trained production lead help a lot.
What to Do Next
Ask your CPA to recast your earnings, then request a valuation. For taxes after closing, see CDTFA tax clearance.