If you are considering selling your food business and wish to plan an exit, realise returns from your investment and maximise sale value, we can help find a buyer for your food service business. A common reason business owners end ownership is due to retirement, health vulnerabilities, market competition, Covid-19 trading challenges or to redirect efforts to other business interests. Selling your business is a cost-efficient way to pass on ownership to an interested buyer and generate a tangible return.
There are many types of companies in the food sector providing services to a range of customers with different appetites and culinary expectations. The Selling My Business team are familiar with selling a whole range of food businesses, from fish and chip shops, village tearooms and hospitality catering businesses. Founded over 60 years’ ago, we are highly experienced in the sale of the following food businesses and more:
|Café & Sandwich Bars
|Coffee Shops & Tearooms
|Vending & Mobile Snacks
|Fish & Chips
The sale process consists of multiple stages, from preparing your business for sale, conducting a business valuation and sourcing a suitable buyer. A business transfer agent can provide the necessary guidance throughout each stage, from marketing your business to thousands of verified buyers, carrying out due diligence and negotiating a competitive sale price.
At Selling My Business, we have an extensive team of business sale and acquisition experts equipped with industry knowledge and vast sector experience to source a buyer for your food business. We have a variety case studies which explore common challenges experienced when directing the sale of cafes, sandwich bars and takeaways, including how to overcome this. Using a business transfer agent highly familiar with the food service trade can open the door to a host of prospective buyers, speeding up the sale process.
The food sector is highly congested with profitable entities, from franchise diners, dessert parlours and fast-food outlets, to independently operated cafes, sandwich bars and coffee shops. By showcasing the unique selling points of your business, you can attract buyers and highlight what makes your shop front stand out. Business resilience, financial health and adapting to gastronomic trends, if your service offering allows, can increase marketing value, heightening your chances of a successful sale.
"Having previously worked with Selling My Business, I approached them to sell my fish and chips shop business as I am fast approaching retirement. They found me a genuine buyer within record time and sealed the deal after I agreed on a competitive offer which was beyond what I expected. "
Carole – Fish & Chips Takeaway and Restaurant, Cumbria
As with customer-facing sectors, there are a host of challenges and opportunities facing the food sector and business owners in this arena.
Photogenic food promoted through the likes of Instagram shows how visual inspiration can help drive consumers to the dinner table. The power of feedback through social media is also a driving force which has the authority to popularise dishes and drive demand, inviting smaller food businesses to advertise through Instagram.
Hosting training events is an innovative and low maintenance method through which you can generate fast income, increase brand credibility and strengthen reputation. Taking the mobile catering route can also help you increase your service offering to cater to the hospitality and events sector.
By detailing expansion opportunities, prospective buyers can gauge growth potential and assess future value. By sharing your own experience and preparing to answer questions relating to the challenges experienced by the business, you can ensure that your interactions with prospective buyers are informative and transparent.
The first step to selling your food business is to prepare it for sale by ensuring that your accounting and financial records are in order, business operations are streamlined, and expenditure is regularly reviewed to maintain low overheads. Prospective buyers conduct extensive due diligence to gain knowledge of the owner’s history, so it is vital to prepare yourself to present an overview on the financial health of the business, guided by your business transfer agent.
The preparation stage is instrumental to your business valuation as a strongly orchestrated business with steady cash flow, a robust operational structure and healthy balance sheet are likely to hold more financial value than a poorly managed business. If your business is in financial difficulty, your financial reports will illustrate this, affecting the final sale price. Valuing a food business, such as a café, take away or fish and chip shop consists of assessing the worth of company assets, inventory, retained profits and overall financial performance.
We offer a food business valuation to help you determine the monetary worth and establish an asking price which achieves market value. We have an in-house valuation team made up of expert food business valuers who will take you through how to value a food business. To conduct a business valuation, we required three years’ worth of recent/historic accounts. The SMB team have over 100 years’ collective experience, so we can share our industry experience and our understanding of what prospective buyers deem important during the business discovery process.
If your business is struggling to recover from the financial pressures presented by the coronavirus pandemic, you may consider selling your business as an alternative to company liquidation. As stores experience temporary closure and a reduction in operational hours due to Covid-19 lockdown restrictions, food businesses across the country are carrying the burden of mounting liabilities and creditor pressure. If you are considering selling shop due to the coronavirus pandemic, the Selling My Business team can help attract serious owners and facilitate the sale of your business.
If you are deciding how to start your journey to selling your food business, the three most common routes are using a business transfer agent, broker or seeking a buyer independently. Breaking down the core pros and cons, we share our understanding of each route:
The Selling My Business team are specialists in the sale of food businesses, from cornerstone village tearooms, your local chippy to family-owned sandwich bars and cafes.
Contemplating selling your business? Our free, comprehensive guide will walk you through how you can sell your company. Our FREE guide covers all of the essentials, including:
Plus much more...