Catering businesses for sale

A catering or canteen business lives on agreements with regular clients. Ask for a list of all contracts with term, notice period, price adjustment and revenue per client. Check whether they contain a change-of-control clause that lets the client terminate if the business is sold. If much of the revenue sits with a few clients, the risk is high. Public-sector contracts are often won through tenders and cannot always be transferred; check the terms and when they will be retendered.

Canteens are often run on the client’s premises with the client’s equipment. In that case you are not buying a kitchen, but the right to run it for as long as the contract lasts. Catering companies, on the other hand, often have their own production kitchen, refrigerated vans and event equipment. Get an equipment list with ownership and condition, and check the lease on the production kitchen. As the new owner you must register the business with the Danish food authority yourself.

Chefs and canteen staff transfer on their existing terms, and you take over their length of service. Ask who handles day-to-day contact with clients. If it is the owner, agree a transition period in which the seller introduces you, and ideally get the key clients’ confirmation before the deal is final.

• Contract list with term, notice and change-of-control clauses.
• Revenue per client and the share from the largest clients.
• Public-sector contracts: tender terms and retendering.
• Equipment and kitchen: owned by you, by the client or leased.
• Staff list and the latest smiley report.

See valuation and handover under restaurants and cafés for sale, and try the price estimate.