Who Usually Buys
- Larger packer or shipper
- Wants more volume through its lines and more grower relationships.
- Cold chain investor
- Buys storage capacity and steady lease income.
- Operating partner
- Runs the plant day to day and funds the deal with an SBA loan and a seller note.
Grower Relationships Set the Floor
A packer is only as steady as its supply. Buyers ask who delivers fruit or vegetables, under what terms and for how long. Written agreements and a long record of repeat growers raise the price.
Concentration matters here too. A plant that depends on one large grower is a risk, and buyers often price that risk as a percentage cut.
Condition of the Plant
Refrigeration systems, sorting lines and docks are expensive to replace. Buyers hire inspectors, and a long list of deferred repairs becomes a price reduction or a walk away.
Treat part of your depreciation as ongoing maintenance when you present earnings. Honest numbers hold up in diligence, while inflated add backs erode trust.
Power, Permits and Compliance
Energy is a major cost, so buyers look at utility bills across seasons. Refrigerant handling, equipment emissions and food safety records will all be checked.
Equipment permits are covered on our air district page, and food related approvals on the environmental health page.
Payroll and work authorization records get reviewed as well. Seasonal labor makes clean paperwork even more important, and off the book pay is a serious red flag.
Owning the Building
If you own the property, a buyer may not want to buy it too. Your choices include selling both, leasing the building to the new owner, or selling the real estate separately. Read selling your building before you decide.
Before You List
- Pull three to five years of volume and revenue by grower
- Gather maintenance logs and recent inspection reports
- Reconcile inventory and equipment lists
- Sort out the lease or ownership paperwork
When you want a number, request a confidential valuation.