What should I check before buying a microgreens business?

Microgreens businesses are compact. A small room, some racks, lights and a steady rhythm of sowing and cutting can supply a handful of customers. That simplicity makes them look easy to take over, but the business often lives in the owner’s routines. Your job as a buyer is to find out what is written down, what is transferable and what only the current owner knows.

The growing space and its lease

Find out where the crops grow and who controls that space. If it is rented, read the lease and ask whether the landlord will agree to a new tenant, how long the term runs and what happens to the fit-out. If it is a corner of a house or a barn, ask what permissions the owner relies on. Your lawyer can tell you what the lease allows.

Equipment, seed and supply

List the racks, trays, lights, fans, watering systems and any climate controls, and note their age and condition. Ask who supplies seed and growing medium, whether those relationships are in writing, and what happens when a supplier is short. Look at how clean the room is and how the records of each batch are kept.

Crop records and losses

Ask to see batch records: what was sown, what was harvested and what was thrown out. Mould, uneven germination and spoiled orders are normal risks in this trade. A seller who tracks them is easier to trust than one who cannot say how much is lost. Ask how the owner handles a failed batch and an urgent order.

Owner dependence and the financial statements

Ask how many hours the owner works and which jobs only the owner does. Then compare the financial statements with the bank deposits and customer records, and ask your accountant to read them with you. Our farm business due diligence guide lists documents to request.