Northeast Wholesale Coffee Roaster Sold for $1.06M, 2 LOIs

About the Business

• Industry: Food & Beverage – Wholesale Coffee Roaster and Distributor

• Location: Northeast

• Size: $1M–$1.5M in annual revenue, $350K–$400K in cash flow

• Sale price: $1,060,000 (asking price: $1,100,000)

• Listing to signed LOI: 69 days

• Signed LOI to close: 90 days

The Challenge: Preparing for Retirement

The owner was nearing retirement after a long career in coffee. He needed a buyer who could take over the wholesale accounts and equipment service.

69 Days to a Signed LOI: Two Buyers, One Cash Offer

What happened at every stage

1. Valuation: Baton set the asking price at $1,100,000, with inventory included.

2. Buyer Outreach: Baton listed the business on its marketplace and BizBuySell, and 100+ buyers viewed it while 50+ opened the data room. The owner met five buyers on Baton-hosted calls, and two made site visits.

3. Offer Selection and Negotiation Support: When a second buyer sent a below-ask offer, the Baton advisor told him a stronger offer was on the table, and he came back with a competing LOI. The owner chose the self-financed buyer, whose revised offer cut the seller note from $165,000 to $55,000.

4. Diligence and Closing Support: Baton worked through about 40 diligence questions with the owner and his accountant during tax season, and kept the buyer, seller and attorneys on one timeline. The deal closed 90 days after the LOI.

The Results

The buyer is a first-time owner-operator who relocated from across the country and runs the business himself. Through Baton's process, the business:

• Sold for $1,060,000 to a self-financed buyer

• Closed with $1,005,000 in cash at closing and a $55,000 seller note, with no bank or SBA loan

• Drew 2 LOIs and 2 earlier indications of interest

What's next for the owner?

The owner stepped back toward retirement through a paid consulting transition after closing.

Advice and Lessons for Future Sellers

1. Certainty of funds can decide it. The owner picked the buyer with cash on hand over one who needed a lender.

2. Let competition improve the terms. A second LOI helped shrink the seller note in the winning offer.

3. Have your accountant ready for diligence. Detailed buyer questions landed in the middle of tax season.