From Portland Business Brokers Group.
Show how a batch becomes a repeat order
Map the path from ingredients to finished goods. Buyers need to understand purchasing, production capacity, quality checks and how customers place their next order.
Separate your own brand from products made for other companies. Those revenue streams can carry different customer risks and production commitments.
Start a production record tray
- Sales and gross margin by product family and channel.
- Equipment ownership, maintenance history and capacity constraints.
- Supplier agreements, substitute ingredients and purchasing lead times.
- Inventory age, spoilage and any product return history.
A strong month can hide a slow moving product range. Explain seasonal orders and unusual inventory purchases so a buyer can follow normal cash needs.
Keep the product knowledge transferable
If only you can approve a recipe change or solve a production issue, document that work before marketing the business. A buyer will ask what expertise stays with the company.
Discuss permits, labeling, contracts and the operating entity with the relevant advisers. A purchase agreement alone does not settle every permission a buyer needs.
Separate the plant from the operation
If you own the premises, compare selling the property with keeping it as landlord. The rent used to evaluate business earnings should reflect the lease a buyer would actually receive.