Food manufacturing, Netherlands

Within the food manufacturing sector, a family-owned bakery in the Netherlands, has served its community for generations. The original owners—two elderly brothers—sought to transition ownership, with the goal of keeping the business within the family. However, the complex personal relationship between the brothers posed challenges to the negotiation process.

Navigating family dynamics in food manufacturing

Initially, one brother was hesitant to sell his shares to his nephew, the son of his sibling and co-owner. Extended discussions finally resulted in a signed Letter of Intent (LOI), moving the ownership transfer forward. Sadly, one of the brothers passed away shortly after the agreement, complicating the transition. This was further impacted by overdue maintenance issues, departing staff, and disagreements around the valuation—key considerations in food manufacturing where operational continuity is crucial.

A balanced solution

Kreston Lentink stepped in to manage the transaction, recognizing the unique needs of a family-run bakery. Kreston Lentink negotiated a 15% reduction in the transaction price to support a fair transition to offset necessary post-transaction investments. When the remaining shareholder wavered, Kreston Lentink’s advisors provided expert mediation to bring both parties back to the table, ensuring a stable outcome for this family-owned enterprise.

A future focused on growth

The transaction was completed successfully, positioning the bakery for future growth in the food manufacturing industry. Now led by the nephew, the bakery recently completed a strategic acquisition and is thriving under new ownership. Both the seller and the buyer are pleased with the outcome and excited about the company’s future in food manufacturing.

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