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wholesale and distribution business for Sale in Ontario

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Eastern Canada Specialty Food Distributor - $12M+ Revenue photo
Food & Related products
+1

Eastern Canada Specialty Food Distributor - $12M+ Revenue

ON, CA

A profitable, well-established wholesale food distribution business serving one of Canada's fastest-growing ethnic food categories is available for acquisition. Operating for 20 years from a GTA-based distribution facility, the business has more than doubled in revenue over the past five years and is currently tracking $12M+ in annual sales with expanding margins. The company serves a highly diversified customer base across Eastern Canada through long-standing supplier relationships and a deep product catalog. Business Highlights - Trailing revenue of $12M+ with consistent gross margins above 22% - Normalized EBITDA of $600K+ with margin expansion underway - Customer base of several hundred active accounts spanning ethnic grocers, supermarket chains, and food service operators across Ontario, Quebec, Alberta, and the Maritimes - Top customer represents less than 3% of revenue (excellent diversification) - Catalog of over 1,800 SKUs across multiple product categories - Network of 40+ established supplier relationships in Canada and the United States - 20+ trained employees and a fleet of nine delivery trucks - Leased distribution facility with renewal option in place - Owner-operator transitioning out, willing to support a structured handover Growth Opportunities Active expansion plans into mainstream supermarket chains, geographic extension into Western Canada, e-commerce and direct-to-consumer channel development, and adjacent ethnic food category extension leveraging existing distribution infrastructure. Transaction Terms Asking Price: Available upon NDA execution Structure: Share sale preferred for tax-efficient treatment to vendors Qualified buyers will be required to execute a Non-Disclosure Agreement before receiving the Confidential Information Memorandum.

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$12,000,000Revenue
-Cash Flow

Market Snapshot

National transaction benchmarks for wholesale and distribution business businesses.

Under $500K

Median revenue$810k
Median cash flow$129k
Median sale price$300k
Multiple range1.4x - 2.8x

$500K to $2M

Median revenue$2.17m
Median cash flow$295k
Median sale price$900k
Multiple range2.3x - 3.8x

Over $2M

Median revenue$8.49m
Median cash flow$1.09m
Median sale price$4.34m
Multiple range3.5x - 5.9x

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.

What to know about wholesale and distribution business acquisitions

GW

By George Wellmer

Cofounder & CEO

Key diligence, valuation, financing, and transition considerations for buyers evaluating wholesale and distribution business acquisitions.

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.

Examine inventory quality, not just quantity

Dead, obsolete, and slow-moving stock inflates the balance sheet; get an aged analysis and value it realistically.

Quantify supplier and customer concentration

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.

Confirm supplier agreements and exclusivities transfer

Distribution rights, territories, and pricing tiers are often the real asset and may not pass to a new owner.

Pressure-test margins and pricing power

Distribution margins are thin and exposed at both ends; understand gross margin by line and how much room exists when costs move.

Assess the warehouse, logistics, and systems

Facilities, fleet (new trucks run $80K–$150K each), and inventory systems drive the operation; tour the warehouse and budget deferred items.

Frequently Asked Questions

Answers to common buyer questions for this market.

Yes, but lenders watch working capital, concentration, and inventory quality closely. Transferable supplier agreements and clean, current inventory make these far easier to fund.