How do I find a wood pellet or biomass business for sale?

Pellet plants, wood-chip suppliers and other biomass businesses are a small corner of the market, so they seldom appear on public listings in any volume. Searches for a pellet mill or a pellet business turn up a mix of real going concerns, used equipment for sale and start-up kits. Sort those three groups early, because it shapes the rest of your search.

Going concern or equipment only

A going concern comes with customers, supply arrangements, staff and a track record. An equipment-only sale is a set of machines, sometimes from a plant that has already stopped. They are different decisions with different risks. Ask early whether the seller is offering a running operation, and whether anyone is still buying its product today.

Where these businesses surface

Listing sites and brokers who handle industrial or resource-based businesses are one route. Equipment dealers may hear first when an owner wants out. Fibre suppliers, bagging-material vendors, fuel distributors and heating-equipment installers also know which plants are tired of running.

Ask whom the intermediary acts for

A broker normally acts for the seller, which is fine, but treat the summary as a starting point for your own checks. Ask what the engagement covers, whether other buyers are involved, and what a first call should include. Working with a broker is a different relationship from buying direct, so be clear about which one you are in.

• Decide whether you want a running plant or only equipment.
• Write down the size and kind of operation you can actually run.
• Gather a short list of dealers, fibre suppliers and distributors to call.
• Prepare your financing questions, as with financing a meat processing business acquisition, before the first serious conversation.