Private Equity Firms Buying Consumer and Food Companies

Consumer and food companies cover everything from packaged foods and beverages to restaurants, specialty retail, personal care brands and consumer services such as fitness or car care. The private equity firms on this page invest across that range, often looking for brands with loyal customers that a larger owner could grow into new channels or regions.

Food and beverage buyers look at brand strength, how quickly products sell at retailers, gross margin after promotional spending, manufacturing capacity and food safety records. Some prefer brands that outsource production; others want to own the plants. Restaurant and multi-unit franchise buyers look at unit economics: sales per location, profit at the store level, the cost to open a new site and how quickly it pays back. Consumer services buyers focus on memberships and repeat visits.

Expect diligence on customer and retailer concentration, since one large retailer can account for a big share of a food brand's sales. Buyers will also review co-manufacturing and supply agreements, ingredient and packaging costs, recall history and, for franchise businesses, the franchise agreements and the health of the franchisees. Online and direct-to-consumer sales are reviewed for real profit, not just growth.

Founders of consumer brands are often closely tied to the brand itself. Owners should ask how much say they will keep over product and marketing, whether the buyer plans to move production, how the team will be rewarded, and what growth the buyer expects. Some firms below make minority investments that let founders stay in charge while bringing in capital and experience.

Timing can make a real difference in this sector. A brand that has just won a major retail account, or a restaurant concept with several strong new openings, will attract more interest than one whose best results are a few years behind it.

Greymont is paid by buyers, never by owners. Greymont can help you find the firms here that back brands like yours, from an outright sale to a minority partner who helps fund the next stage.