Western Food Manufacturer Sold for $2.6M, LOI in 80 Days
Rachel Horner
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2 min read
About the Business
Industry: Manufacturing – Packaged Prepared Foods for Grocery & Foodservice
Location: West
Size: $10M–$11M in annual revenue, $750K–$1M in cash flow
Sale price: $2,600,000
Listing to signed LOI: 80 days
Signed LOI to close: 234 days
The Challenge: Two Owners Ready to Retire
Both owners were heading into retirement and wanted to sell within the year. They needed a buyer who could take over a food plant supplying grocery and restaurant chains.
80 Days to a Signed LOI: How Baton Kept a Backup in Play
What happened at every stage
Valuation: Baton valued the plant on its latest full-year results, with $750K–$1M in adjusted cash flow. During LOI talks, the Baton advisor met the owners to build out a full add-back list.
Buyer Outreach: Baton marketed the listing on its own marketplace, BizBuySell and Axial. More than 160 buyers viewed it and 75+ buyers opened the data room.
Offer Selection and Negotiation Support: While negotiating the LOI with the lead buyer, the Baton advisor pushed a second food-industry buyer to submit an offer and kept him in reserve as a backup. He previewed the owners' redlines with the buyer by phone and got the LOI signed 80 days after launch.
Diligence and Closing Support: The Baton advisor ran weekly diligence check-ins, then weekly closing calls, and kept the buyer and SBA lender engaged through a lengthy underwrite. The deal closed as a stock purchase.
The Results
The buyer is a first-time owner-operator who previously held senior manufacturing leadership roles globally, and he became the company's president at closing. Through Baton's process, the business:
Sold for $2,600,000 in a stock purchase
Closed with an SBA 7(a) loan and a $400,000 seller note
Signed an LOI 80 days after going live, with a backup buyer in reserve
What's next for the owners?
Both owners sold to retire, and one owner supported the buyer through a six-month transition.
Advice and Lessons for Future Sellers
Document your add-backs early. A clear add-back list gives buyers a cash-flow number they can underwrite.
Keep a backup buyer warm. A second offer gave the owners a fallback while they negotiated the LOI.
Plan for a long SBA close on a larger deal. Weekly check-ins kept the buyer, lender and owners moving toward closing.