Best Practices When Selling Your Ice Cream Business With Raymond James
This month, we’re back with another article for our financial forum series! Using the economic learnings we share in these articles, we’ll help set you up for a successful ice cream season ahead.
Our first article provided an overview of working with an investment banker during the sale process. During that discussion with Raymond James, we only scratched the surface of what needs to be done before you can even think of selling.
This month, we continue that conversation with John Barrymore, Managing Director. But this time, we’re devoting an entire article to the challenges of selling a business in the ice cream and frozen dessert industry. From unraveling the most common obstacles to discovering how to avoid them, we learn how to best set ourselves up for a successful sale. Let’s dive in!
What’s Important When Selling an Ice Cream Business
Like any business, showcasing your points of difference from your competitors will help increase the chance of a sale – and possibly earn you a more profitable sale.
Consider what makes you different, better, or more memorable than your biggest competitor. Is it your large number of points of distribution? Your impressive 5-year forecast? Your exciting product pipelines?
Whatever it may be, you must communicate this differentiator effectively to a potential buyer. Make it clear to others why you should be their top choice if they’re in the market to expand in the industry – and use your defensible business case to back it up.
That leads us to the next biggest factor – presenting tangible evidence that supports a large growth opportunity. Any new buyer wants to see that there’s room for expansion. And as much as you may believe it yourself, you need the numbers – or tangible proof – to back it up.
One final (and critical) factor to keep in mind when selling your ice cream business? Clearly illustrate a positive financial outlook for your company.
To help sweeten the potential for an acquisition, highlight the financial levers of your business operations that could allow an investor to improve margins.
The more potential for elevated margins, the more interest a potential seller will have in acquiring your business!
How to Present Your Ice Cream Company – As Favorably as Possible!
Hiring an experienced advisor is the number one way to present your ice cream or frozen dessert business in the best light possible.
By working closely with you, they’ll first generate a business strategy in preparation for the sale. This will then be used to help express the opportunity to potential buyers and communicate all that’s important.
It’s also essential to properly time the sale of your ice cream business. You should always ensure there’s plenty of time given for upfront preparation and that you’re showcasing your business in the best light possible.
By preparing for the sale process at the end of the summer season, you’re able to highlight profits from your busiest time of year and display elevated growth.
When selling any business, challenges can arise if you don’t do it right. In the ice cream world, you’re risking a potential sale – or a more profitable sale – if:
You choose the wrong time to sell your business;
You fail to communicate your competitive advantage;
You lack tangible insights proving there’s a significant growth opportunity; or
You’re unable to outline a clear plan for higher profits.
When preparing to sell your ice cream business, ensure you’ll meet these success criteria. If not, it’s better to wait a minimum of one year to embark on a new sale process.
If you’re considering selling your ice cream business, we can help make valuable connections to accelerate the process and ensure it goes as positively as possible! Email us with more information to get started.
Founded by former executives in the ice cream industry, INNODELICE aims to create a worldwide ecosystem of solutions within the frozen dessert industry. Thanks to the relationships fostered by INNODELICE, manufacturers, brands, importers, distributors, and suppliers can discover, buy, and sell solutions to grow their businesses. These solutions include co-manufactured and branded products and innovative and competitive ingredients, packaging, and services. Our collaboration model generates lower costs and fewer risks for our participating partners while optimizing their time to market. To learn more about INNODELICE, contact Andrea Montreuil or visit www.innodelice.com.