Understand the working capital the business needs to run
Inventory and receivables tie up real cash between purchase and collection; establish the requirement and whether it's included. Working capital is often the biggest swing in the price.
Similar businesses sell at 1.4x to 5.9x SDE. Compare live listings and connect with sellers.
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Minnesota-based apparel brand founded in 2016 with a long-standing mission to support youth affected by homelessness. Primary revenue engine is B2B custom apparel for corporate gifting, branded merchandise, events, retailers, nonprofits, artists, teams, and institutions. Products are American-made through domestic manufacturing partners; no owned plant or real estate required. Lean operating structure with owner-led sales/strategy, remote contractors, domestic manufacturers, and third-party logistics fulfillment. Excellent add-on or lifestyle acquisition opportunitiy in B2B
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TYPE OF BUSINESS: Wholesale distributor of fishing products. This eight-decade-old family business with a solid reputation in its industry. They specialize in flies, jigs, crankbaits, rods & reels, floats, books and DVDs. Serving over 400 retail locations in 23 states and parts of Canada. A good portion of sales come from the Midwest. They have a presence on Amazon as well. There is great potential to increase sales by acquiring sales staff, new dealers, and distributors. The client list is impressive; it includes large, big-box retail stores, bait shops, hardware stores, outfitters, resorts, and sports shops to name a few. FACILITY: It is home-based and relocatable to any location in the US. The recommended space for the business’s inventory is approximately 2,000 sq. ft. EMPLOYEES: The two owners work an average of 35-60 hours a week, more in the fall and spring. One handles all the sales and sports shows, assists with ordering products, works with the vendors and their production, and maintains the shop. The other owner oversees all internal affairs, answering the phone, social media, finances, and product ordering. The sales department is overwhelmed and needs help. GROSS SALES/CASH FLOW: The gross sales for 2023 were $131,000, Gross sales in 2022 were $157,500, and Gross sales in 2021 were199,500. ASKING PRICE: The asking price for the business is $230,000. Included in the asking price are approximately $24,700 in furniture, fixtures, and equipment, inventory at a wholesale value of approximately $275,000, vendor and customer lists, all social media, business phone numbers, trade names, and goodwill. REASON FOR SALE: Retirement.
National transaction benchmarks for wholesale and distribution business businesses.
Under $500K
$500K to $2M
Over $2M
A variety of factors can cause businesses to trade outside this range, including earnings quality, operational transferability, key-person risk, growth trajectory, and geography, so a listing priced above or below the typical multiple usually reflects real differences in the underlying business.
Cofounder & CEO
Key diligence, valuation, financing, and transition considerations for buyers evaluating wholesale and distribution business acquisitions.
Inventory and receivables tie up real cash between purchase and collection; establish the requirement and whether it's included. Working capital is often the biggest swing in the price.
Dead, obsolete, and slow-moving stock inflates the balance sheet; get an aged analysis and value it realistically.
A key manufacturer or a few large accounts can carry the business and walk; if a senior rep with a big attached book leaves at close, you lose it. Review terms and exclusivity.
Distribution rights, territories, and pricing tiers are often the real asset and may not pass to a new owner.
Distribution margins are thin and exposed at both ends; understand gross margin by line and how much room exists when costs move.
Facilities, fleet (new trucks run $80K–$150K each), and inventory systems drive the operation; tour the warehouse and budget deferred items.
Answers to common buyer questions for this market.