Guy Fieri in a recent interview on the Joe Rogan Podcast (https://youtu.be/NzBNVGNY_FA?si=n_agUPvO8RMslwHv) aptly said, “Food is the common denominator for all people”. As such, food and food products were without doubt the first items sold and in all probability the first products merchandised in a commercial setting outside of a residence (Estimated to have occurred for the first time in a marketplace setting with numerous venders approximately 4100 years ago (https://deloitte.wsj.com/cmo/lessons-from-ancient-commerce-1476849740).
IBA is the oldest business brokerage firm in the Pacific Northwest having first opened our doors to the entrepreneurial community as a professional service provider 50 years ago in Portland, Oregon in 1975. Since that time, we have never commercially sold food, but one of the most common types of businesses sold by IBA has been privately held companies and family businesses that grow, manufacture, distribute, serve, or support the provision of food products. There is no bigger marketplace to sell products and services, 100% of the people in any community, than for a business that sells items for consumption.
“Eat Local” and “Organic” are two phrases that had little prevalence in America before the turn of the last century. Today, they are phrases that most people are familiar with and influence a growing number of shopping preferences. As the weather warms and the ability to grow items locally enhances in Washington & Oregon the number of Farmer’s Markets available to consumers also blossoms. Did you realize that in 1994 there were under 2000 Farmer’s Markets in the United States and today the number is approaching 9000 (https://farmersmarketcoalition.org/education/qanda/) generating approximately $9 billion of revenue in total for the participants (https://www.sba.gov/blog/sba-resources-help-americas-farmers-markets-grow-flourish). This robust marketplace for products creates a fertile venue for entrepreneurship. IBA has successfully sold numerous businesses that used this commercial environment to sell their products. Farmer’s Markets provide a wonderful, low cost entry space for beta testing products and selling merchandise with low overhead and limited risk.
As a market leading M&A firm supporting the manufacturing sector of the economy, IBA is frequently contacted by entrepreneurs who manufacture food products for revenue generating sales through wholesale distribution and retail companies. End customers for these manufacturers can be grocery stores, online retailers, distributors, restaurants, or consumers directly. The spectrum of products manufactured by IBA past clients are as varied as spices and seasonings that go into a good Cajun gumbo. Some examples of prior transactions include wholesale bakeries (https://ibainc.com/blog/nesha-ruther/the-story-of-pierre-fauvet-parisian-star-desserts/), wineries (https://ibainc.com/blog/nesha-ruther/the-story-of-joel-rebecca-tefft-tefft-cellars/), and manufacturers of high quality raw pet diets (https://naturalpetpantry.com/). Proper valuation, confidential marketing, and negotiation of manufacturing sector business sales requires industry specific knowledge, experience, and skill.
Many successful companies do not either manufacture or directly retail sell products. They serve as middlemen acquiring, warehousing, and with precision, timely logistical skill delivering products. Food products often have limited shelf lives and/or seasonality. Nothing is worse for an entrepreneur than to literally have to “eat” inventory because no ready & willing marketplace exists for its sale. I fondly recall sharing a periodic glass of wine with Giancarlo Manzin (https://www.legacy.com/us/obituaries/seattletimes/name/giancarlo-manzin-obituary?id=29271631), who imported quality wines & products from Italy, Croatia, and other places in the Mediterranean, discussing business, food, and wine. Among other accomplishments he first brought SANPELLIGRINO (https://www.sanpellegrino.com/us/) to the Pacific Northwest securing its first placement in Costco and being the go to provider of Italian wine for many restaurants who did not want their menu offerings shopped against grocery store prices. Having a business broker familiar with the facilitation of assigning product sourcing vendor contracts and inventory valuation & transference strategies is critical in the sale of a wholesale/distribution company in the food products space.
High achievement as an entrepreneur in the retail sector requires knowledge, experience, and skill in the selection, merchandising, and sale of products. I fondly recall shopping at Larry’s Markets, Kienows (https://youtu.be/ciG9xEtUpno?si=S8vzEBnzyjwH3nzn), and Whole Foods, before the merger with Amazon, and my ability to find quality, curated, local and artisan products. I believe opportunity is knocking in the retail sector for the provision of locally sourced, quality products as the Big Box retailers move farther and farther way from sourcing close to their location in an effort to maximize profits. IBA as a commercial real estate firm with nine offices in Washington & Oregon has the ability to sell or lease real estate for our clients. In the retail space, LOCATION, LOCATION, LOCATION remains a key component for entrepreneurial success. There are few retail environments where IBA has not sold a business during the last fifty years in the Pacific Northwest.
One of the simple pleasures in life is having someone else prepare your meal whether it is family, a friend, or a restauranteur. IBA has facilitated the sale of more hospitality businesses delivering best bites and quality meals in the metropolitan areas and rural communities of Washington & Oregon than any other business brokerage firm serving the region. IBA has successfully sold food service businesses including drive thru coffee kiosks; fast serve franchised & independent establishments; ethnic restaurants providing quality cuisine from Europe, Asia, Africa, Australia, Central America, and South America; United States regional cuisine from Pacific Northwest seafood to Southern BBQ and from Midwest diners to East Coast Jewish & Italian delis; fine dining restaurants; and bars, taverns, and night clubs. As a firm we remain committed to the hospitality industry as it recreates itself after COVID, changing consumer tastes, economic battles with inflation and staffing issues. A desire to buy food provided by others is not going away. The question is how to provide it efficiently, cost effectively, and in a manner where a commensurate return on investment is provided to the entrepreneur taking the risk. IBA is a willing resource with a robust Rolodex to support the hospitality entrepreneurial community. If a conversation related to how to prepare a hospitality business for sale in Washington is desired, IBA’s Hospitality Industry Transaction Division Director, Oliver Kotelenikov, would welcome the opportunity to connect with you. Mr. Kotelnikov can be reached at (425) 454-3052 and oliver@ibainc.com. He is an engaged member of the Washington Hospitality Association (https://wahospitality.org/). Similarity, if a conversation about preparing a hospitality business for sale in Oregon is desired. IBA’s lead broker serving that space in Oregon, Joseph Hollcraft, would welcome the opportunity to be a resource. Mr. Hollcraft can be reached at (503) 739-4880 and joseph@ibainc.com. He is an engaged member of the Oregon Restaurant & Lodging Association (https://www.oregonrla.org/). All conversations with IBA are held in strict confidence.
The business models necessary to provide food items to the public are not limited to those that manufacture, distribute, or sell consumable products. IBA, as a full service business brokerage firm with the ability to sell privately held companies across a spectrum of industries ( https://ibainc.com/industries-served/) also is a time tested resource for selling businesses ranging from ones that manufacture boxes, containers, and tanks for storing product to ones who install and maintain refrigeration to entities that rent tables, chairs, & linens and provide the contractor services that remodel existing restaurants and create new hospitality establishments from food trucks to hotels.
Food is needed for health and is a common expression of culture and love. There is not likely one among us that does not have a positive memory tied to food. If you are interested in a feel good movie experience, I recommend Nonnas (https://youtu.be/rDJxJd3FzDY?si=fJ50kEi62ePk6R4B). I suspect you will leave the experience with a hankering for Italian cuisine and desire to connect with your mom and/or grandmother. Bon Appetit.
IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, real estate, legal, accounting, banking, and wealth management communities on subjects relevant to the purchase & sale of privately held companies and family businesses. IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.