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 5.7x SDE. Compare live listings and connect with sellers.
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The Company was founded in 1996 and has operated from a single location under one owner for three decades. It is organized as a Tennessee limited liability company under a manager-managed structure. Day-to-day operations, purchasing and accounting are run by long-tenured employees; the owner has stepped back from daily involvement and is seeking to sell the Company and retire. This communication relates solely to a potential change-of-control M&A transaction involving an eligible privately held company. It is intended only for prospective acquirers who will acquire control and actively participate in management and is not an offer or solicitation of securities. If these criteria do not apply to you, this communication is not intended for you; please do not access or review the transaction materials.
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Own a piece of a high production contract distiller. This distillery has been built for high production. Customers and orders are in place! The owner just needs a few hundred thousand more in loans to complete the facility, purchase ingredients and support the operation until the first barrels are completed. Your opportunity is to guarantee $100,000.00 of the final loan for 1% ownership of the entire LLC. There are only two portions left of the last five that opened up for this rare opportunity. While you are not even investing your dollars, you are risking your investment as a guarantor. With your interest, all details (hard to list here) and direct contact with the majority owner will be available once a good fit is concluded. For information call Jeff Bach at 314-941-8530 or email [email protected]
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.