How to sell a distribution business
Distributors are valued on supplier exclusivity, customer stickiness and inventory-turn efficiency.
The value drivers
Exclusive or protected supplier lines
Diversified, recurring customer accounts
Efficient inventory turns and clean logistics
What drags the price down
The risks a buyer discounts
- Customer or supplier concentration
- Slow-moving inventory tying up cash
Typical valuation
typically 4–6× EBITDA, adjusted for working capital.
Usual buyerlarger distributors and PE roll-ups
Indicative only — your defensible range is built from your actual numbers.
How to prepare a distribution business for sale
Know your number
Get a defensible valuation grounded in your normalised earnings and how buyers actually price businesses like yours.
Close the value gaps
Fix what discounts the price — the risks above — and strengthen the drivers buyers pay a premium for.
Clean the books & data room
Normalise financials and assemble a buyer-ready data room so nothing derails the deal in due diligence.
Run a managed process
Approach several qualified buyers to create competitive tension and protect both price and your leverage.
FAQ
How is a distribution business valued?
Around 4–6× EBITDA, adjusted for working capital. Supplier exclusivity, customer diversification and inventory efficiency drive the number.
What makes a distribution business more sellable?
Protected supplier lines, diversified recurring customers, efficient inventory turns, and reduced owner-dependence.
Selling a distribution business?
We help owners value, prepare and sell — quietly, and for the best achievable price.