Transaction Overview
Sinosmart Business Brokers assisted in the successful sale of an Asian meat processing facility.
The business was founded by a young entrepreneur and operated under a complex structure that combined food production with multiple franchised retail outlets—bringing together manufacturing, retail, and franchising under one integrated model.
Background and Key Concerns
Before selling the processing facility, the owner had already completed the sale of several franchised retail stores through us. These earlier transactions established a strong working relationship and a high level of trust between both parties.
When the seller began considering the sale of the processing plant, his primary concern was not price, but control over information and the stability of existing relationships. He was worried that news of the sale might leak to franchisees, staff, or business partners, potentially disrupting day-to-day operations. This made the decision process emotionally demanding.
In addition, the factory premises were owned by the seller’s family. For the deal to proceed, a new lease had to be structured in a way that was commercially reasonable and practically workable. Without this, the transaction would not have been viable.
How Trust Made the Difference
At this stage, we did not rush the business to market. Instead, we moved at the seller’s pace, prioritising confidentiality, deal structure, and overall control of the process.
Only one highly suitable buyer was introduced. This buyer had previously been involved in another Asian food wholesale transaction that did not proceed, and there was some emotional sensitivity around that experience. Throughout the process, we maintained full transparency—clearly explaining the seller’s decision-making logic, applying no pressure, offering no misleading signals, and making no changes to agreed terms.
When the buyer and seller met, discussions were direct, practical, and constructive. Many key commercial issues were resolved through open dialogue, and the transaction was ultimately structured as a share sale. This approach better reflected the nature of the business, which combined food manufacturing with a franchising system.
Transaction Complexity and Outcome
A share sale involving both food production and franchising brings significant legal, tax, and execution complexity.
The key reason this transaction was completed smoothly was not the technical design of the structure, but the high level of personal trust between buyer and seller. That trust allowed sensitive issues to be discussed openly and decisions to be made efficiently.
After completion, the seller provided training support as agreed and continued to assist the buyer with operations during the transition. What began as a transaction evolved into a long-term working relationship.
Key Takeaway
In businesses that combine production and franchising, a successful transaction depends not only on the seller’s willingness to move forward or the buyer’s ability to take on risk—but, more importantly, on the trust built between both sides.
