There are a lot of business brokers to choose from. Choose one that knows the key drivers of wholesale and distribution company profits, so we can help you sell for more or find the right company to acquire.
Wholesale/Distribution Issues for Sellers:
Wholesale and distribution company owners know that to make money you need to understand how the margins work. In a lower margin business like yours, the balance sheet tells all. In this industry, we focus on finding strategic buyers. Companies that operate in wholesale and distribution industry will be interested in your business because their strengths will overcome your weaknesses, and fill in any holes by cross selling their added products to your clients, and vice versa. Often there is an alignment between the seller’s and the buyer’s product lines. We developed a proprietary system to help us identify qualified buyers, and then get them to confidentially bid on your company, ensuring you the highest price for your business. With this arrangement, you may also have the option to sell only a majority stake of the business, securitizing your future and remaining on as CEO for a second, and potentially larger, sale of the remaining portion later!
Beyond finding the right buyer, it’s equally important that the deal get structured properly. With the sizable accounts receivables that most wholesale and distribution companies hold, business flow is more important than cash in the bank. It’s essential to protect the A/R, so a letter of intent that fails to recognize this can be devastating for the seller. Inventory is equally important and is the life blood of any wholesale/ distribution company. In a typical sale, normalized inventory is included with the sale. It’s essential that inventory challenges are identified during the pre-market preparation.
Wholesale/Distribution Issues for Buyers:
If you are a company looking to grow by acquisitions, or if you are an individual buyer looking to get into this vibrant industry, ROI can help. We have developed a proprietary model to identify, contact, qualify and evaluate businesses for possible acquisition by an individual or corporate buyer. We are seeking the proverbial ‘needle in a haystack’. That requires us to turn over a lot of hay. Our record of success representing buyers is outstanding. Learn more about how the PASS model works.
Improve your business now and sell for more at a later date:
If you have 1-5 years before you may want to sell your business, you have time to increase your future pay-out. ROI Corp’s Value Maker Program is a proprietary process that benchmarks the value of your business now and identifies the 5-15 key points that you can focus on with your CPA or business advisor so that when you’re ready to sell, your business is worth much more to potential buyers than it is today.
To get started or learn more, contact us at 781-682-6209, by email, or using the Request Information form to the right of this page.