FOOD MANUFACTURING

Food Manufacturing is one of the golden businesses to own. They are in high demand an in a post Covid world, those that are supplying supermarkets are seen as a fairly safe bet against any future lockdowns. People need to eat and as such these types of businesses are always seen as desirable by buyers. There are things to look out for when looking at this type of business which may not always be apparent, so look at things carefully. Often these businesses hold high levels of current assets such as stock and debtors and this can have an impact on cash flow requirements after purchase. This is an even greater factor if raw materials are being imported as this requires upfront payment usually. There are also some stringent regulatory requirements in these businesses such as custom Food Control Plans with MPI that require specialist knowledge or training, so remember to ask these questions of the Vendor if you are considering one of these types of businesses. As a seller, demand for this type of business is high, but expect somewhere in the region of 3 years cash surplus (including stock) but excluding debtors and creditors. There are many factors in considering a food manufacturing, so contact on of our experts for advice whether you are considering buying or selling