From Shoestring Startup to Strategic Exit
When experienced industry operators spot a gap in the market and design a business to scale efficiently from day one, the result can be both durable growth and a highly attractive exit.
That was the case with Greystar, a formulator and maker of branded food products, founded by industry veterans Terry Italia and Greg Hayes. What began as a lean, outsourced operation built around brand licensing ultimately became a strategic acquisition opportunity at exactly the right moment.
In a recent conversation following Greystar’s successful sale, Terry shared how the company was built, scaled, and positioned for exit and what other business owners can learn from the journey.
Bold moves pay off
Before Greystar was even formally established, the founders made a bold move: a cold call.
They reached out directly to a well-known national barbecue chain, pitching a vision to bring the restaurant’s barbecue sauces into grocery and membership channels. Drawing on their category expertise and credibility, they secured the licensing agreement, quickly forcing the incorporation of the business and accelerating execution.
This first deal validated the concept and established Greystar’s playbook:
- Leverage recognizable brands
- Execute with large-company discipline
- Keep the organization lean and capital-efficient
“Look and Act Like a Major Company”
From day one, Greystar had a clear operating philosophy: never look small to the trade.
Rather than trying to stand out, the company aimed to blend in seamlessly with major consumer packaged goods suppliers. That meant having every operational box checked without carrying the overhead of a large internal staff.
Greystar outsourced nearly everything. This model kept fixed costs low while allowing the company to scale nationally and service large retailers with speed and reliability.
Importantly, licensed brands reduced the need for heavy consumer marketing spend. Brand recognition already existed; Greystar simply needed to execute.
Navigating Industry Realities
Like any grocery products business, Greystar faced challenges:
- Inventory carrying costs required significant working capital
- Slotting allowances demanded upfront payments for shelf space
- Competitive pressure from dominant players in certain categories
Early lessons shaped later strategy. After competing head-to-head with a category leader and seeing how aggressively incumbents could defend small but meaningful categories, the company adjusted course.
Greystar shifted its focus toward ethnic food categories, where innovation was limited and brand extensions could win shelf space more sustainably.
The Breakout Partnership
That strategic shift led to Greystar’s most important partnership.
When Greystar secured the licensing agreement of a well-known national Asian food chain, they operated roughly 800 restaurants. As the chain expanded nationally to more than 2,600 locations, Greystar’s grocery product sales grew in parallel. Securing the agreement required innovation, tenacity, and patience, ultimately proven when the brand chose the Greystar formula in a blind taste test.
The inflection point came during COVID-19, when consumers dramatically increased at-home meal preparation. Demand surged for meal-oriented grocery products, and this lineup outperformed competing licensed brands in the category.
For the founders, the timing mattered.
Knowing When to Sell
The decision to sell wasn’t driven by distress, it was driven by readiness.
The founders were approaching retirement age, had no family succession plan, and recognized that Greystar would thrive best under an owner with manufacturing scale and deeper operational infrastructure.
COVID-era growth provided a compelling window: strong financial performance paired with a clear strategic narrative. That’s when Greystar engaged FOCUS Investment Banking to run a structured sale process.
The Sale Process: More Rigor Than Expected
Despite Greystar’s simple organizational structure, the founders were surprised by the intensity of buyer diligence.
Every outsourced function had to be explained. Every process had to be validated.
Ultimately, three buyers emerged. The winning buyer stood out for two reasons:
- In-house manufacturing, eliminating co-packer margins
- An existing supplier relationship with a well-known national Asian food chain, strengthening the brand partnership across channels
The result was a transaction that worked for both sides and positioned the brand for continued growth.
Lessons for Business Owners Considering an Exit
Terry shared several insights that resonated strongly for founder-owners:
- Don’t sell from a position of need: Buyers want growth. Having clear future initiatives, even if they’re still on the drawing board, changes the conversation.
- Design your business to scale before you need to: Greystar’s outsourced model allowed buyers to clearly see how the business could grow under new ownership.
- Take care of your people during diligence: The sale process is demanding, especially for finance and operations staff. Trust, respect, and fair compensation matter, particularly when confidentiality is required. Making sure the buyer will take care of your people is critical to sustaining a legacy.
- Strategic fit often outweighs headline price: The best buyer isn’t always the first (or the fastest). Alignment can unlock more value than negotiation alone.
Greystar’s story is a powerful reminder that intentional business design matters. By building a company that focused on its strengths, stayed disciplined through growth, and remained committed to strategic partnerships, the founders created both operational success and a highly attractive exit.
For business owners thinking about their own long-term plans, the lesson is clear:
the best exits are built years before the sale ever begins.
