Buying a food or drink business: what to look for
For founder-led food and drink firms buying in their sector: the UK market, brands, plants, customer concentration, food safety and finding willing sellers.
This page is for owners of founder-led food and drink businesses, usually with £5m to £100m turnover, who want to grow by buying others. You might be a manufacturer looking for a brand to put through your plant, a brand owner wanting your own production, a drinks business adding a category, or a supplier wanting new customers and channels.
We help you find the right businesses to buy, including ones not for sale, approach their owners in confidence and keep the deal moving. Food safety, technical and site reviews sit with your own technical team or independent specialists.
What is happening in food and drink M&A?
Activity picked up over the last year. Pinsent Masons research found UK food and drink M&A deals rose 18% year on year to 78. Private equity backed 16 of them, or 20%, down from 27% the year before. The firm points to growing interest from larger food groups and investors in fast-growing lifestyle and functional brands (Pinsent Masons, reported by Food Manufacture, July 2026). Other advisers count deals more broadly, so treat 78 as one measure, not the whole market.
On price, Dealsuite reported that agriculture and food businesses averaged 5.2 times EBITDA (operating profit) in the second half of 2025, slightly below the 5.4 average across all UK and Irish mid-market deals (Dealsuite, February 2026). Averages hide a wide range: a growing brand with strong margins can command far more than a contract manufacturer with one large customer.
For a founder-led trade buyer, private equity is a smaller share of buyers here than in many services sectors. Strategic buyers who understand the product, the plant and the customers remain well placed, especially if they get to owners early.
Why do food and drink owners buy?
- Brands. Buying an established brand with loyal customers is often quicker and cheaper than building one.
- Capacity and capability. A plant, a production process or a packaging line can let you make products you currently outsource, or fill capacity you already have.
- Customers and channels. A target with listings in retail, foodservice or export markets you don't reach opens new routes for your own products.
- Supply chain control. Buying a supplier or a co-packer can secure supply, quality and margin.
- Category growth. Adding a category, such as a functional product or a premium range, can follow where demand is heading.
What makes a food or drink business different to assess?
A general due diligence checklist covers the basics. These points matter most here.
| Area | What to check |
|---|---|
| Brand and customer dependence | Share of sales to the top customers, listing history, retailer terms, promotional spend and what happens to margin after promotions. Whether brand trade marks and recipes are owned and registered. |
| Margins and working capital | Gross margin by product and customer, exposure to ingredient, packaging and energy costs, and how price rises have been passed on. Stock levels, shelf life, write-offs and payment terms. |
| Supply chain | Reliance on single suppliers, co-packers or ingredients, and the contracts behind them. |
| Plant and capacity | Age and condition of equipment, spare capacity, maintenance spend still to come, leases and planning. Whether your products could run on the target's lines, or the other way round. |
| Food safety | Certification and audit results, local authority inspections, recalls, complaints, allergen controls and traceability. A site visit by a food safety specialist. |
| Integration economics | Where the savings or extra sales will come from, what they will cost to achieve and how long they will take. Moving production between sites is slower and costlier than most plans assume. |
Customer concentration and the plant are where buyers most often get caught out. A business with one dominant retail customer can lose a large share of sales in one ranging review. A plant that looks well run can need significant spending soon after completion. Check both before you agree the price and main terms in writing.
How does finding food and drink targets work?
Many of the best businesses are family-owned and not for sale. Owners care about their brand, their people and their reputation in the local area as much as price. What works:
- Define what you want and why. Category, size, channel, brand or manufacturing, and how it will fit with what you already do. This is your acquisition thesis.
- Research properly. Filings, retail listings, trade press, certifications and food safety ratings show what a business really does and how well it is run.
- Approach in confidence, owner to owner. Explain why the brand or business fits and what happens to it and the team afterwards.
- Qualify before you meet. Confirm interest, rough fit and any obvious issues on customers or site.
Who does what on a food and drink acquisition?
Michael Ferguson was head of M&A at one of the world's largest family-owned spirits companies, before joining CDI Global. He has worked on acquisitions in drinks from the buyer's side, so he understands how strategic food and drink buyers think about brands, production and routes to market. More of his background is on our about page.
- You: the decision, the owner relationship, and the commercial and integration plan.
- Acquisitiv: the search, owner approaches, qualification and deal management.
- Your technical team or a food safety specialist: site, food safety and quality review.
- Your accountants: real profit, margins and working capital.
- Your lawyers: customer and supplier contracts, trade marks, property and the sale agreement.
How can Acquisitiv help?
Acquisitiv Target 45 researches 100 businesses that fit your criteria, agrees the list with you, approaches the owners in confidence and makes 5 introductions to owners open to a confidential conversation about a sale. If we are short at day 45, we keep going at no extra fee. It does not promise a completed deal.
If you plan several acquisitions, the Acquisitiv Expansion Partnership runs your search, pipeline and live deals month after month, coordinating your lawyers and accountants.
Where to start
If you are thinking about buying a brand, a plant or a competitor, book an Expansion Briefing: a 30-minute call with us, followed by a short written summary and a recommended next step.
Questions buyers ask
What do food and drink businesses sell for?
It varies widely. Dealsuite reported an average of 5.2 times EBITDA (operating profit) for agriculture and food businesses in the second half of 2025, but sector averages hide a wide spread. Brand strength, growth, margins, customer concentration and size all move the price. Your accountants should test real profit before you agree a figure.
How much does customer concentration matter?
A great deal. A business that sells most of its volume to one or two retailers or wholesalers depends on their ranging decisions, terms and promotions. Check contracts, listing history and margins by customer, and talk about how relationships will be handed over.
What food safety checks should I do?
Look at the target's food safety certification and audit results, local authority inspection history, recalls, complaints and allergen controls. Have a technical or food safety specialist review the site in person. This sits with your own technical team or an independent specialist.
Has Michael worked in food and drink?
Yes. Michael Ferguson was head of M&A at one of the world's largest family-owned spirits companies, before joining CDI Global, so he has worked on acquisitions from the buyer's side in the drinks industry.
Last reviewed 16 October 2026 by Michael Ferguson.
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