How do I check a small co-packer’s list of clients and runs per month?

A co-packer sells capacity, so you want to know how that capacity is used. Start with the client list. Find out which clients are steady, which are occasional and which are new. If one brand fills most of the schedule, note it and ask what would happen if that brand moved to another plant.

Next, look at the production schedule for several months. See the run sizes, the gaps between runs and how far ahead clients book. Compare the schedule to invoices and to revenue in the financial statements, so that what the seller says matches the books. Ask what happens in a busy week and in a slow one. A plant that is always full may have room to raise prices or may be stretched, while a quiet plant may have room to grow. Speak with clients, with permission. Ask whether they intend to keep using the plant after a sale. Your lawyer can review any client contracts. Ask what share of runs are repeat products and what share are trials, because a plant full of one-off trials has less predictable work.

Key takeaways

• Get the client list with each client’s share of revenue.
• Review recent schedules and match them to invoices.
• Ask clients, with permission, whether they plan to stay.
• Ask how many runs are repeat products and how many are trials and note how far ahead clients usually book.