ANAHEIM & NEARBY ORANGE COUNTY
Sell a Specialty Distribution Business
Anaheim Business Broker Service connects distribution business sellers with a valuation partner.
A distributor can show strong sales while cash remains trapped in stock. Prepare an earnings story that also explains purchasing terms and working capital.
Show where the margin comes from
Prepare sales and gross profit by product line and customer. Buyers look for repeatable demand, not only a large revenue total.
Identify exclusive supply arrangements and explain renewal or change of control terms. Confirm consent requirements before describing an agreement as transferable.
Test the quality of the balance sheet
Review aged receivables, inventory turnover and slow stock. Old accounting entries can overstate what a buyer can collect or sell.
Reconcile supplier balances and deposits. A working capital target needs an agreed definition and consistent accounting rather than a convenient month end snapshot.
Compare offers on what you retain
Clarify cash, debt, receivables and inventory treatment in the offer. Different inclusions can make two identical headline prices produce different outcomes.
Ask your CPA to model proceeds after debt, fees and taxes. A seller note also means part of your payment depends on future collection.
Bring an organized earnings file
For the distribution earnings file, review seller discretionary earnings before discussing an asking price.
For your distribution asset package, compare the working capital terms with the proposed asset package.
Put your questions beside your numbers
Use the seller estimate form to describe your distribution company. You can ask about customer continuity and transfer documents before deciding whether to pursue a sale.
For a conversation, call (714) 555-0162.