Food manufacturing and co-packing encompasses businesses that produce, process, and package food products either under their own brand or on behalf of CPG brands, retailers, and emerging food startups. The sector is driven by persistent consumer demand for packaged foods, the outsourcing trend among emerging CPG brands that lack in-house production, and the growth of private label across major retail chains. Lower middle market operators often occupy specialty niches — ethnic foods, natural and organic, allergen-free, or cold chain — that provide defensible competitive positioning.
Who buys these: Private equity groups, strategic acquirers in CPG, entrepreneurial operators with food industry backgrounds, and family offices seeking stable cash-flowing businesses
3–5.5×
Typical EBITDA multiple
$1M–$5M
Revenue range
Growing
Market trend
SBA Eligible
7(a) financing available
Recession Resistant
Essential service
Businesses with $1M–$5M in revenue, EBITDA margins of 10–20%, diversified customer base with no single customer exceeding 30% of revenue, documented food safety certifications, and demonstrated ability to win and retain co-packing contracts
Get Deal Flow In Your Inbox
New Food Manufacturing & Co-Packing acquisition targets delivered weekly — free to join.
Key items to investigate when evaluating a Food Manufacturing & Co-Packing acquisition
Seller Intelligence
Who sells Food Manufacturing & Co-Packing businesses?
Owner-operators in their 50s–70s approaching retirement, second-generation family business owners seeking liquidity, and founders who built regional co-packing operations and lack a succession plan
Typical exit timeline: 12–24 months
Food Manufacturing & Co-Packing businesses in the $1M–$5M revenue range typically sell for 3–5.5× EBITDA. Businesses with $1M–$5M in revenue, EBITDA margins of 10–20%, diversified customer base with no single customer exceeding 30% of revenue, documented food safety certifications, and demonstrated ability to win and retain co-packing contracts
Food Manufacturing & Co-Packing businesses typically trade at 3–5.5× EBITDA in the lower middle market. The market is highly fragmented with growing demand, which supports premium multiples.
Food Manufacturing & Co-Packing businesses are SBA 7(a) eligible, making them accessible to first-time buyers. SBA 7(a) loan with 10–20% buyer equity and seller note for gap financing
Key due diligence areas include: FDA/USDA inspection history, any 483 observations, warning letters, or recall events; Customer contract terms, renewal schedules, and revenue concentration by client; Condition, age, and replacement cost of processing and packaging equipment; Food safety certifications (SQF, BRC, HACCP, organic, kosher) and audit records; Raw material supplier agreements, pricing volatility exposure, and supply chain redundancy.
Related Searches
DealFlow OS surfaces acquisition targets, scores seller motivation, and generates outreach — all in one place.
Start finding deals — freeNo credit card required
For Buyers
For Sellers