Distribution & Wholesale
Sell your distribution business
Distributors sit in the middle of the supply chain, and buyers value that position when supplier agreements are secure, customers are diversified and margins hold up.
Request a Confidential ValuationCall (877) 367-0977- Typical buyers
- Strategic Distributors, Manufacturers, Investor-Backed Platforms
- Common valuation basis
- Adjusted EBITDA for larger companies, SDE for owner-operated businesses
- What buyers study first
- Customers, margins, equipment and workforce
- Typical time to close
- Six to twelve months once marketed
Industry Overview
The market for distribution businesses
Distribution and wholesale businesses connect manufacturers with contractors, retailers, industrial users and consumers. Their value rests on supplier relationships, customer loyalty, logistics capability and the working capital discipline that keeps inventory moving.
Buyers look at supplier agreements and exclusivity, customer diversification, gross margin trends, inventory accuracy and turns, warehouse and fleet capacity and the systems that tie it all together.
For owners of distribution businesses with at least $1 million in revenue, preparation makes the difference. Businesses that can show clean financials, a capable team and customers who stay tend to draw competing offers. We help you get there, then run a confidential process that reaches strategic, investor and individual buyers.
The Buyer Pool
Who is buying distribution businesses
Reaching several of these buyer groups at once is how a confidential process creates competition, and competition drives price and terms.
Strategic Distributors
Larger distributors adding territory, lines or customers.
Manufacturers
Producers integrating forward to control distribution.
Investor-Backed Platforms
Groups building regional distribution companies.
Experienced Operators
Logistics and sales leaders ready to own.
What Moves Your Number
What drives value
Two businesses with identical revenue can be worth very different amounts. These are the factors buyers in this sector actually underwrite.
Request a Confidential Valuation- Supplier agreements, exclusivity and their history
- Customer diversification and repeat ordering
- Gross margin trends and pricing discipline
- Inventory accuracy, turns and obsolete stock
- Warehouse, fleet and systems that support growth
- Working capital needs through the year
Due Diligence
How buyers evaluate distribution businesses
Expect a serious buyer and their lender to look closely at each of these areas. Preparing them before you go to market shortens the process and protects your price.
Customers
Revenue by customer for three or more years, contract terms, how long relationships have lasted and who at your company holds them.
Equipment
Equipment lists with age, capability, condition and maintenance history, plus expected replacement needs.
Quality
Certifications, audit history, returns, warranty claims and customer scorecards.
Workforce
Headcount, tenure, wages, training and dependence on specific key people.
Financials
Monthly results, margins by customer or product, working capital and add-backs with support.
Facility & Environment
Lease or real estate plans, capacity for growth and any environmental history on the property.
Before You Go To Market
What quietly lowers your value
None of these are fatal, and every one is easier to address before a buyer finds it than after. That is the case for getting a valuation early rather than late.
- A key supplier relationship with no written agreement
- Heavy dependence on one or two customers
- Obsolete or inaccurately tracked inventory
- Margins squeezed with no clear pricing response
Preparing To Sell
A practical timeline
Most owners who sell well start preparing a year or two before they go to market.
Build the foundation
24 to 12 months out
Get a professional opinion of value. Diversify customers where possible. Develop a production or operations manager. Document quality and production processes.
Prove it
12 to 6 months out
Organize equipment lists and maintenance records. Clean up monthly financials and add-backs. Address deferred maintenance. Review lease and real estate plans.
Run a confidential process
Going to market
Prepare a detailed offering memorandum. Reach strategic, investor and individual buyers. Share sensitive data in stages. Negotiate price, structure and transition.
Common Questions
Common questions from owners
What is my distribution business worth?
Buyers value it on documented earnings, then adjust for customer concentration, team depth, owner dependence, assets and market conditions. A confidential Opinion of Value gives you a realistic range based on those factors.
What happens to my supplier agreements?
Some transfer easily, while others require supplier approval. We review them early, because supplier continuity is central to value.
How does working capital affect my price?
Buyers usually expect a normal level of working capital to remain in the business. Defining that level in the letter of intent protects your proceeds.
How long does it take to sell?
Most well-prepared businesses take six to twelve months from going to market to closing, with preparation time beforehand.
Related Industries
Explore related industries
Client Reviews
Owners who have been where you are
Selling a business is hard and stressful! Trevor was a steady and supportive partner during the process! He is a great problem solver and has great connections to help and assist if needed!
I have never had a better experience with any broker. Trevor went above and beyond for months on end to get my business sold.
Trevor was very attentive and consistent throughout the whole process and never gave up. When things got tough, he reassured us that was the process and it was all good in the end. We would highly recommend him and his team.
Start Here
Know your number first
A confidential Opinion of Value tells you what your business is worth to a real buyer today and what would move that number. No cost, no obligation, and no one learns you asked.
Request a Confidential Valuation