Sell My Food & Catering Business
Thinking about selling your food and catering business? We explain how to go about putting everything in place to realise maximum value and make the process as smooth as possible.
Several important steps are involved. You must ensure the financial outlook of your company is optimised to present a healthy, appealing picture to prospective buyers – including minimising costs – and streamline business operations so that each aspect is functioning to its highest potential.
Whether your decision to exit the company is influenced by retirement aspirations, other personal reasons, ambitions of starting a new venture or trading challenges, we can help you to sell your food business to an acquirer who will grow the business with new leadership at the helm.
At KBS, we have vast experience of selling companies within this sector such as catering suppliers, food factories, coffee brands and luxury hamper specialists, contributing to our success in becoming firmly established as the UK’s leading mid-market business sales adviser.
Valuing my food & catering business
As mentioned above, preparation is key towards ensuring an accurate valuation is placed upon your company which will not only reward you for the effort you have put into building the business, but also attracts a sizeable level of interest.
A buyer will conduct due diligence and they will want to see clear evidence of steady cashflow, a strong operational structure and a positive balance sheet which, all combined, indicate a business that is flourishing and has scope for further growth.
All in all, the factors that will be considered when determining the value of your food and catering business are the worth of company assets, inventory, retained profits and the overall financial performance. Having as a minimum the last three years of financial accounts available for scrutiny will give a representative illustration of how the business has performed.
6 tips for preparing to sell your food business
1 Repair and maintenance work
Nobody will want to buy a food and catering business that looks shabby or displays anything less than the highest hygiene standards.
When visiting your premises, a buyer needs to be impressed with the facilities. They must be immaculate, so make sure anything that requires fixing is repaired and all work surfaces where food is prepared are spotlessly clean.
It is not necessary to go overboard with refurbishment to make everything modern and new as a buyer is likely to have their own ideas about what they want. Simply ensure that what you have is fit for purpose, effective and looks the part.
2 Ensure a hygienic environment
As mentioned above, hygiene standards are critically important in the food and catering industry. The first thing to do is inspect every inch of your premises and equipment to make sure they are as clean as possible and always remain so, even if that means implementing an upgraded cleaning regime.
In addition to utilising your own cleaning team, you could hire an external professional company to conduct an inspection and issue a certificate of cleanliness that would highlight your commitment in this area and impress potential buyers.
3 Prepare important documents
Details of financial records, as described above, are among the important documents you will need to have readily available when selling a food business. As part of our service, we can generate a comprehensive financial report illustrating the future projection of your company.
Also necessary are a list of assets such as fixtures, fittings, equipment and vehicles; up-to-date hygiene certificates; documents encompassing up-to-date leases, insurance, licences and other permits; incorporation documents; employment contracts; and stockist information regarding associations with suppliers.
4 Define the operational structure
Do you have the right team ready to step up and take on greater responsibility when you exit the company? A buyer will want to know the correct management structure is in place.
It could be off-putting if an acquirer gets the impression they will have to source their own senior staff to run the business or even do it themselves, so the prospect of a seamless transition is particularly valuable.
5 Secure the sale
Upon reaching the negotiation stage and striking a mutually suitable deal with a buyer, the agreement will be covered by the Heads of Terms which gives details of the transaction including the final sale price and attached conditions such as the payment structure.
Once this has been signed, the legally binding Sale Purchase Agreement can then be drawn up. Our panel of highly respected, experienced legal partners is available to represent your interests and ensure the acquirer fulfils the commitment they have made to buying your food business.
6 Hire expert business sales advisers
Having an experienced business sales adviser, such as KBS, on your side when selling a food business is a huge advantage.
From the moment we first start to learn about the objectives you wish to achieve, we will take on much of the workload during the sale process – from identifying the right valuation to marketing your opportunity, finding the right buyer, overseeing negotiations, protecting confidentiality throughout, and allowing you to focus primarily on running your business to the best effect.
Challenges when selling a food business
Among the biggest challenges experienced in recent times by owners of food and catering businesses was the Covid-19 pandemic. Restaurant owners, for example, had to abide by lockdown protocols which enforced the closure of their premises – although many responded by seizing the opportunity to offer takeaway services which they may have continued since being allowed to properly reopen.
Nevertheless, the catering industry was also hit by a staffing shortage as workers sought other types of employment – to which some became fully adjusted and thus chose not to return to their jobs in hospitality, possibly due to being able to work from home or during more socially acceptable hours.
Unfortunately, many companies were forced into liquidation as a result of the pandemic and some are still finding it difficult to turn a profit in an increasingly competitive market – but selling your business can be a sensible way of alleviating those financial pressures.
Expert support selling your food & catering business
It may appear from what you have read above that selling your food business is a lengthy, complex process – but it is certainly not something you would have to navigate all by yourself.
Instead, you can benefit from the expertise of KBS, a one-stop shop for anyone selling a catering business. Our superb track record over more than a quarter of a century’s experience in the business sales industry vindicates our approach in applying a bespoke, personalised service to every company we sell.
Besides understanding your aims for the sale, marketing your opportunity and finding the right buyer, we can connect you to all the services you may require, for example legal experts and tax advisers.
Our knowledge, contacts and use of the latest data and technology means we can maximise buyer reach whilst only considering those with the financial means, insight and desire to buy your company and push it forward.
Having established a proven history of delivering award-winning success, we can accompany you throughout the journey towards completing a business sale that fulfils all your objectives. Contact us on 0161 258 0118 for a confidential, no-obligation discussion.
RECENT BUSINESS SALES IN THE FOOD AND CATERING SECTOR
Percol
KBS Corporate Director Andrew Dodd has advised on the sale of Percol, a UK coffee brand, to CCL Products (India) Ltd (Continental Coffee).
The Percol brand was acquired by Löfbergs in 2013 as the Swedish coffee roaster looked to enhance its UK market presence.
Hillingdon-based Percol has cemented itself in its market with a sustainability-led philosophy, actively supporting farmers and the environment wherever possible.
Percol’s coffee products were the first to bear the Fairtrade mark in 1994 and have received recognition from the Rainforest Alliance and the Soil Association.
Löfbergs instructed KBS on the sale of Percol as part of a long-term strategy to maximise the value of its brand.
“This is a strategic decision that enables us to put all our efforts into strengthening and developing the Löfbergs brand in the UK, a market where coffee consumption still increases,” said Anders Fredriksson, CEO of Löfbergs.
Andrew Dodd worked closely with Löfbergs to identify a suitable acquirer that could develop Percol into a premium brand with vast national recognition.
Andrew said: “Over the course of 10 years, Löfbergs has reevaluated Percol’s offering to refine the profitability of the brand.
“Percol has a great reputation in the UK and, with the right buyer, is well placed to compete with the leading coffee brands in the UK.”
Sara Fletcher, Senior Corporate Document Writer at KBS who assisted with the marketing process, added: “It was important to produce marketing materials that reflected Percol’s ethical values and its commitment to sustainability while demonstrating its strong market potential by highlighting its previous success with some of the UK’s largest supermarkets.”
Established in 1994, India-based Continental Coffee is an international instant coffee exporter and private-label manufacturer.
The organisation has developed an extensive global infrastructure that enables the business to serve over 90 countries.
Praveen Jaipuriar, CEO of Continental Coffee, commented on the acquisition: “We’ve had tremendous success in developing a consumer brand proposition in India and welcome the opportunity to develop a similar approach in other markets by adopting and improving local brands. Percol is an exciting venture and a brand with an undoubted favourable heritage.”
Andrew added: “I wish all parties the very best. A lot of effort went into securing the right deal. With the necessary resources, Percol can become a premier brand in the UK.”
Percol
Sector: Food and Drink
Location: London
Buyer: CCL Products (India) Ltd
Ready to talk about your business requirements?
Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.
Percol
Sector: Food and Drink
Location: London
Buyer: CCL Products (India) Ltd
Ryan Brothers Holdings Ltd
Award-winning catering services provider Sprint Group has been sold to a private equity-backed competitor in a deal overseen by KBS Corporate.
Worcestershire-based Sprint Refrigeration & Catering Ltd, founded in 1994 by David Ryan, designs, installs and maintains commercial kitchens and food servery counters, working with the hospitality industry as well as schools, hospitals and care homes.
Among its clients are well-known brands including Burger King, Giraffe, The Ivy Asia and Bill’s, with Sprint having been honoured on multiple occasions at the Foodservice Equipment Journal Awards and the Catering Insight Awards.
With the help of KBS Corporate Director Tom Eatough, Sprint, which is the trading name of Ryan Brothers Holdings Ltd, has been acquired by Bradford-based Airedale Group – backed by private equity investor Rubicon Partners – in a highly strategic investment.
Luke and Ross Ryan will continue to head up Sprint, with the Airedale Group having renewed the lease at the company’s head office in Pershore for 10 more years.
“This is a great opportunity to build on everything that has been achieved by the Sprint team,” said Ross Ryan. “The support and investment available as part of the Airedale Group will help to deliver our growth plans and see the business fulfil its potential.
“After extensive discussions over many months with the Airedale team it became clear the two businesses have similar priorities and values, especially with respect to customer focus and a dedication to delivering exceptional results.
“We were also struck by their approach to businesses that had previously joined the Airedale platform, particularly the retention of both culture and identity. We are convinced Sprint’s growth will only accelerate as a result of group synergies and the investment available.”
Rob Bywell, Airedale Group CEO, added: “With this acquisition, Airedale Group are demonstrating a continued commitment to broadening our offering, and to investing in unique propositions for the hospitality and food service sector.”
Ryan Brothers Holdings Ltd
Sector: Catering Services
Location: Worcestershire
Buyer: Airedale Group
Ready to talk about your business requirements?
Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.
Ryan Brothers Holdings Ltd
Sector: Catering Services
Location: Worcestershire
Buyer: Airedale Group
Proper Cornish Limited
KBS Corporate’s deal team have been described as “simply brilliant to work with” by the CEO of food manufacturer Proper Cornish after overseeing the sale of the business.
The Bodmin-based company, renowned for their Cornish pasties, have been acquired by French quality food producer Boncolac who specialise in frozen sweet and savoury baked products.
At the heart of the transaction were Mark Lucas and George Jackson, KBS Corporate Managing Director and Associate Director respectively, who advised the Proper Cornish shareholders during a process that identified Boncolac as the ideal buyer to help accelerate growth for the company, which was founded in 1988, and to retain the brand and its entrepreneurial ethos.
“Mark, George and their team were simply brilliant to work with,” said Chris Pauling, CEO of Proper Cornish.
“They were an exceptional support through every stage of the sale and made our job easy.
“They clearly understood our business and the market, which was reflected in the expertly written and designed marketing materials and their ability to generate lots of interest from potential buyers.
“They were on the front foot throughout and were instrumental in finding the best price and home for our business and getting the deal done.
“I’d thoroughly recommend them to any entrepreneur looking to raise investment or sell a business.”
A high-performing and dynamic manufacturer of products which also include sausage rolls and other savoury pastries, Proper Cornish’s attraction to potential buyers also comprised its state-of-the-art infrastructure, a loyal and diverse customer base and a clear plan to continue its strong growth trajectory.
Those factors clearly appealed to Boncolac, whose headquarters is in Toulouse with their Group backed by Waterland Private Equity Investments which operates across Europe.
“This transaction delivers continuity for Proper Cornish as part of the Boncolac Group, an ambitious Pan-European buy-and-build project, and allows the sellers to secure the shareholder value created by Proper Cornish’s growth trajectory and investments,” said Mark Lucas.
“The acquisition offers Boncolac clear commercial synergies through various cross-selling opportunities and establishes a strong presence in the UK market.
“We are delighted to have advised Chris and his team on the sale of Proper Cornish. They have built an absolutely fantastic business which has found a great home to continue its journey in the Boncolac Group.”
Proper Cornish Limited
Sector: Food and Drink
Location: Cornwall
Buyer: Boncolac SAS
Ready to talk about your business requirements?
Give us a call on
+44 (0) 161 258 0118 or contact us now to get started.
Proper Cornish Limited
Sector: Food and Drink
Location: Cornwall
Buyer: Boncolac SAS
Speak to our expert team on 0161 258 0118 to arrange a consultation
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