Food, Retail & Hospitality · Seller readiness
Selling a Bakery business
Published · Reviewed by The Diligence Standard Team · Updated
Owners should prepare product/channel margins, production labor, wholesale accounts, waste, equipment and lease data and show the recipes/process can transfer.
How the business works
Product mix, food/labor cost, wholesale versus retail revenue, production capacity, waste and lease/equipment determine value.
Issues to resolve
- Product margins are unknown
- Owner production is not normalized
- Wholesale accounts are informal
- Equipment maintenance is deferred
- Recipes/processes are undocumented
Evidence to request and reconcile
- POS/channel sales
- Product cost and vendor purchases
- Payroll/production schedules
- Wholesale account history
- Equipment/maintenance
- Lease and permits
Decision questions
- What earnings remain after replacing owner production?
- Which products actually create gross profit?
- How concentrated are wholesale accounts?
- What equipment CapEx is coming?
- Can recipes and production standards transfer consistently?