Every week, in collaboration with LISTING, an M&A matching platform for small and medium-sized enterprises (SMEs), we report on newly listed assets and acquisition demand in the domestic M&A market. By examining the background of deals and market trends, we provide practical market information to companies and investors considering M&A. [Editor’s Note]

[E-Daily Marketin Reporter Song Seung-Hyeon ] A food service and food company with a franchise business, food manufacturing, and cold-chain logistics capabilities, as well as an agricultural product processing and wholesale company that operates an integrated process from direct procurement at the source to processing and delivery, have been successively listed for sale in the domestic mergers and acquisitions (M&A) market. A listed IT solutions company and a foodservice and beverage firm affiliated with a major conglomerate have each formalized their intentions to pursue “bolt-on” acquisitions, aiming to secure system integration (SI) and software capabilities, respectively, and to incubate foodservice brands. There is a clear trend toward seeking physical-asset-based targets that can generate immediate synergies by integrating with existing businesses, rather than simply expanding scale.

According to the M&A matching platform LISTING on the 27th, Company A, a food service and food company based in the Seoul metropolitan area, is seeking a buyer. Company A operates a franchise business alongside in-house food manufacturing and food ingredient distribution. It has recorded annual sales in the 9 billion won range and operating profit in the 400 million won range, with profits increasing for two consecutive years. By directly operating its own food safety-certified production facilities and a cold-chain logistics network, the company supplies ingredients and its own manufactured products to a nationwide franchise network, creating a structure that generates recurring revenue from both franchise fees and supply sales. The asking price is around 3 billion won for 100% ownership, contingent upon the buyer assuming interest-bearing debt and business real estate. It is considered a suitable opportunity for strategic acquirers looking to expand their foodservice or food businesses without having to build new factories or logistics networks from scratch.

Another property for sale is Company B, an agricultural product processing and wholesale firm located in the Yeongnam region. It has established an integrated production process: raw materials are secured through direct purchases from production areas, stored in large-scale cold storage facilities, and then processed and sorted before being delivered as packaged products in various specifications tailored to corporate customers’ needs. With annual sales in the 7 billion won range, the company has successfully returned to profitability with an operating profit in the 300 million won range following a sales rebound. Its strong point is its substantial tangible assets, including automated processing and packaging facilities and commercial real estate; the asking price is in the 6 billion won range for 100% ownership. It is considered suitable for acquirers seeking to expand the product lineup of food ingredient distributors or to internalize processing capabilities.

Acquisition interest is also taking shape. Company C, a publicly traded IT solutions firm, is considering the acquisition of an SI or MSP (cloud management) company with revenue under 50 billion won or a company possessing its own B2B software products, with a budget of over 20 billion won. With the goal of diversifying its business by adding new product and service lines on top of its existing solution business customer base, this is classified as a high-intent acquisition due to the specific details provided regarding the target’s size and business model.

Company D, a food and beverage firm affiliated with a major conglomerate, is also pursuing the acquisition of restaurant brands and franchises, focusing on small deals in the range of 5 billion won. The company is broadly reviewing a wide range of options, including individual brands with growth potential—not necessarily limited to franchises—and is planning an “incubation” approach to grow these brands by integrating them with its own operational infrastructure following acquisition. It has left room to increase its budget if the conditions are right, so it is expected to have significant overlap with food and restaurant companies that possess manufacturing and logistics capabilities, similar to the properties listed this week.

Industry observers believe this two-way market revitalization, driven by both supply and demand, will continue for the foreseeable future. While value-chain-type assets—those with a physical foundation in production and logistics and a recurring revenue structure—are attracting strategic acquirers seeking to avoid the burden of building new factories, a recent market trend is the growing demand from buyers who have already specified the target industry, scale, and utilization plans.

A listing official stated, “In the recent M&A market, strategic acquisition demand aimed at creating synergies with existing businesses, securing technology and distribution networks, and entering new businesses is becoming more prominent than simple financial investment,” adding, “An approach to introducing anonymized listings—based on the premise of protecting corporate information—can help broaden the scope of opportunities in the small and medium-sized enterprise (SME) and mid-market M&A sectors.”

Detailed listing information and acquisition demand can be found on LISTING.