4 Food Beverage Manufacturer Businesses For Sale

Food manufacturing businesses can vary in size from small operations to multi-million dollar companies that supply products to our major supermarket chains such as Coles and Woolworths. In order to buy an existing food manufacturing business, you need to register for alerts so you are notified when a new business is listed. You can then make contact with the seller and request more information. Usually the seller or broker will ask you to complete an NDA to ensure the confidentiality of the business. Buying a food manufacturing business contains a lot of elements and it's important to seek professional advice during the process to ensure the due diligence process is conducted properly. 
 

Selling a food manufacturer business requires preparation. Having a solid exit strategy will mean your manufacturing business is ready for sale and has a greater chance of achieving an optimum price. It’s important to be prepared for the sales journey as it usually takes around 6-9 months to sell a business in Australia. Check out Bsales 6 steps to prepare a business for sale which will provide you a checklist and a general step by step guide. Business brokers are licensed professionals who can assist with the sale of your business and market it on websites such as Bsale. Check out the Find a Business Broker section to locate a suitable broker for your business. Bsale also offers advertising direct to business owners. 

There is a lot of size variation in food manufacturers, it may be a small business that sells keto cookies online to a large company that supplies ice cream to the major supermarkets. Locating a good food manufacturer, firstly depends on your price point and what you can afford to purchase coupled with your experience and ability to run the business. A good food manufacturer will have solid processes in place, knowledgeable staff, reliable equipment, good branding and marketing and a good distribution and supply chain.
 

There are food manufacturers for so many different cuisines such as cookies, cakes, ice cream, yoghurt, chips, chocolate, protein powders, cereals and more. The type of food manufacturing business you buy will depend on your experience and the amount of money you have to invest. 
 

Basically, anyone can buy a food manufacturing business. The owner will need to have a solid understanding of food development practices and have completed food health and safety courses. Depending on the size of the business, the buyer may be looking to work within the business, or they may be looking for investment opportunities. Experience in food production would be beneficial, but not required. 

You will have the ability to create products that people can enjoy. Food manufacturers get the benefit of supplying food within Australia and overseas. You get to experience the journey from initial conception, to sourcing raw materials from farming, to manufacturing, to packaging, to marketing, to distributing and selling. Food manufacturing involves a number of different processes that the owner will be part of and a knowledgeable team that they will be responsible for. Buying an established food manufacturer will have a number of these processes in place making the process a lot easier than starting from scratch. 

Food manufacturing businesses are appraised based on a multiple of the net profit to the owner with some market predictions. The determining factor is usually, what will the market pay for this business based on similar sales. Obviously with food manufacturers there are a lot of variable factors such as; the price of equipment and whether it is owned or leased; whether the factory is leasehold or freehold; whether there are contracts in place especially with the major supermarkets; the technology used to produce the products; patents and trademarks etc. It's important to seek professional advice when buying a business so you can conduct proper due diligence. It’s important to note that an appraisal is an estimation of what the business could sell for in the current market, whilst a valuation is conducted by licensed business valuers.
 

The plan for most food manufacturers is to place their product into the major supermarket chains as it has the most consumers. This is often a long process and involves rounds of testing the market and seeing if a product is viable before the major chains will accept it. Smaller food manufacturers will make money by selling online, boutique stores, cafes, markets, tradeshows, etc.  
 

The best way to keep track of new business opportunities is to save your search result. You will be notified as soon as a new food manufacturing business is listed for sale.