For Sale: Expressions of Interest
Business Overview
This well-established coffee roaster has been trading longer than 20 years and is now offered for sale by the founder.
Their primary focus is on contract and white label roasting, with two key accounts ordering from the business longer than 10 years, making up the majority of revenue. The major customer is experiencing exponential growth, and their volume is increasing considerably.
Roasting an astonishing 6 tonnes per week, there is room for improvement in the business's revenue and cost model, which does generate relatively low margin compared to the industry norm. The business has passed on increases to raw materials to their customer experience across the board in 2023, however, their price of finished product generally remains low and highly competitive.
This pricing model has driven excellent revenue growth in the last 5 years, with a compound annual growth rate (CAGR) of 27.5% since 2018, and generating $2.3M in revenue in FY22.
Outside of the top customers, there is also a stronger opportunity to grow this market sector by selling to cafes and into retail. For these customers the price of finished product is better aligned with market, and also demonstrates room for improvement.
This coffee roaster is a perfect example of a business with low-hanging fruit. The business has been operated by family and is poised to benefit from new ownership and direction.
There is sufficient equipment infrastructure to take this business to the next level, featuring two roasters (120kg, 60kg), industrial pod machine, 2 fillers, vacuum packager, condenser and much more. Like the business, the equipment is aged, yet well-maintained. If your opinion is that the older models are built to last, you will love this workflow setup.
EBITDA for FY22 was $296,566, after the GM's salary of $125,000.
A new lease can be arranged with the owner.
This business is being offered for sale by Expressions of Interest.
Whilst we will endeavour to communicate with all interested parties, our client reserves the right to enter a binding contract without further notice.
Buying a business is easy with Vision
"We understand that as every business is different, so is every buyer. Ask your broker about the information the Vendor will make available as part of due diligence so you know what to expect at the beginning of the process."
Dan Levitus
Senior Partner
Licensed Business Broker
m: 0450 326 146
t: (02) 8923 2632
Daniel Kogan
Senior Partner
Licensed Business Broker
m: 0401 620 918
t: (02) 8923 2632
The Purchaser is responsible for conducting their own investigations in relation to this business and VBA does not warrant the accuracy of any information contained in this business.
Comentários