Step-by-Step Process to Selling a Coffee Roasting Business
Selling a coffee roasting business is a major financial decision, and getting the best price requires a strategic approach. Buyers typically assess businesses based on EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation), making it essential to present strong, verifiable financials. To streamline the sale and maximise value, engaging a Certified Professional Business Broker (CPBB) can be the key to success.
A structured, step-by-step process ensures your business is well-positioned for a profitable sale. Below, we outline the proven approach to selling a coffee roasting business, including how to prepare, market, and close the deal effectively.
Step-by-Step Process to Selling a Coffee Roasting Business
Get a Paid Appraisal
The first step in selling your coffee roasting business is obtaining a professional valuation. A paid business appraisal from an industry expert ensures that you set a realistic price aligned with market conditions. A CPBB can facilitate this process, ensuring the valuation reflects both current financial performance and future growth potential.
An accurate valuation prevents under pricing (losing money) or overpricing (scaring away buyers). It also strengthens negotiations by providing objective, data-backed pricing.
Prepare the Financials
Buyers expect transparent and well-organized financials, which is why preparing detailed reports is crucial. Work with your Coffee Roasting Broker and accountant to compile:
• Profit and loss statements (last 3-5 years)
• Balance sheets
• Cash flow statements
• Tax returns
• Adjusted EBITDA calculations (removing non operational expenses)
Strong financial records build buyer confidence and justify your asking price. Ensure all discretionary or personal expenses are documented and separated to reflect the business’s true profitability.
Set a Marketing Strategy
A tailored marketing strategy ensures your business reaches qualified buyers, whether they are strategic buyers, investors, or competitors. Your CPBB will develop a confidential marketing plan, which may include:
• Direct outreach to industry contacts and investors
• Confidential online business-for-sale listings
• Targeted advertising in industry publications
• Private networks of high net worth buyers
By positioning your coffee roasting business as an attractive investment, a CPBB maximises interest while maintaining confidentiality.
Generate an Information Memorandum
An Information Memorandum (IM) is a comprehensive document that presents your coffee roasting business to potential buyers. It includes:
• Business overview (history, operations, key differentiators)
• Financial performance (EBITDA, EBIT and revenue trends)
• Customer base and contracts
• Supplier agreements
• Growth opportunities
• Reason for sale
A well prepared IM acts as a sales tool, attracting serious buyers while protecting sensitive business information. Your Certified Coffee Roasting Business Broker will create and distribute this document strategically.
Set a Marketing Strategy
A tailored marketing strategy ensures your business reaches qualified buyers, whether they are strategic buyers, investors, or competitors. Your CPBB will develop a confidential marketing plan, which may include:
• Direct outreach to industry contacts and investors
• Confidential online business-for-sale listings
• Targeted advertising in industry publications
• Private networks of high net worth buyers
By positioning your coffee roasting business as an attractive investment, a CPBB maximises interest while maintaining confidentiality.
Agree to Upfront Costs and Success Fees
Before proceeding, clearly define the broker’s fees. Most CPBB’s operate on a success based commission, typically 6-10% of the final sale price, but may also require an upfront retainer to cover marketing and due diligence costs.
A CPBB’s expertise justifies the investment by securing higher valuations, attracting qualified buyers, and navigating complex negotiations. Ensure the fee structure aligns with your expectations and sales goals.
Manage Buyers, Offers, and Contracts
Once potential buyers express interest, your CPBB will:
• Screen serious buyers (financial capability, strategic fit)
• Manage non disclose agreements (NDAs)
• Manage initial inquiries and Q&A sessions
• Negotiate offers and deal terms
The goal is to create a competitive bidding environment, increasing your leverage in negotiations. Buyers often conduct extensive due diligence, reviewing financials, operations, and supplier contracts. Your CPBB ensures a smooth process, addressing concerns and maintaining deal momentum.
Exchange Contracts and Settlement
Once an offer is accepted, the legal process begins. This involves:
• Drafting and signing a Heads of Agreement (HOA)
• Final due diligence by the buye
• Drafting and negotiating the Sale and Purchase Agreement (SPA)
• Handling financing arrangements
• Finalising legal approvals
After all conditions are met, contracts are exchanged, and settlement occurs—officially transferring ownership to the buyer. Your CPBB oversees this final stage to ensure a seamless transition.
Why Work with a Certified Professional Business Broker (CPBB)?
Selling a coffee roasting business involves complex financials, negotiations, and legal requirements. A CPBB specialises in business sales and ensures a professional, structured approach. The key benefits of using a CPBB include:
Maximizing your sale price based on EBITDA
Protecting sensitive business information
Leveraging networks of serious investors
Securing the best terms and deal structure
Managing due diligence, contracts, and settlement
By working with a CPBB, you increase your chances of a successful sale while minimising stress and ensuring a smooth transition.
Final Thoughts: Selling for Maximum Value
Selling a coffee roasting business on an EBITDA basis ensures you get the best possible price while demonstrating profitability to buyers. By following a structured step by step process, preparing your financials, and leveraging the expertise of a Certified Professional Business Broker (CPBB), you can maximise value and close the deal with confidence.
Ready to sell your coffee roasting business? Start by getting a professional valuation and engaging a CPBB today to secure the best possible outcome.
We are here to address any questions you may have as you implement your plan. Additionally, for clients seeking an ongoing partnership, we provide comprehensive
