Selling wholesale & distribution: start with what transfers
Reconcile sales and margin by customer, supplier and product category. A buyer needs to understand stock availability, returns, freight costs and credit terms.
What a qualified buyer will want to understand
Supplier access, working capital and a customer base worth keeping. Prepare an explanation of how a normal week works, who makes decisions and which relationships belong to the company. Buyers should be able to distinguish the operating system from the owner’s personal effort. If the owner plans to stay for a transition, define the scope, hours and duration rather than leaving that promise open-ended.
Your industry-specific preparation list
- Inventory aging and valuation method
- Supplier agreements
- Customer concentration
- Receivables, payables and credit policies
A detail that can change the deal
A business can report a profit and still absorb cash into slow inventory. Show what a normal level of working capital looks like across the year.
Price the earnings a buyer can sustain
The starting point is a reconciled financial history, followed by an explanation of owner compensation, supportable adjustments, asset condition and the resources required to operate. We discuss business market positioning; a formal appraisal, tax allocation or legal opinion belongs with an appropriately qualified adviser. An asking price is a proposal, and both the evidence and the transaction terms influence the outcome.
Transfer and licensing questions
Supplier authorizations and exclusivity can be personal or nonassignable. The buyer should confirm continued access before valuing a brand relationship as permanent.
How we help find and prepare for a buyer
For qualifying business asset transactions, we help organize the sale story, prepare an anonymized overview, establish a staged confidentiality process and identify prospective buyers. Buyer experience, available funds, timetable and operating fit all matter. Services and fees are defined in a written engagement after the jurisdiction and transaction structure have been reviewed.
Keep the business and the premises clearly defined
Identify the assets being offered before marketing begins. If the transaction requires property representation, a lease assignment, a new lease or another regulated service, appropriately licensed professionals handle that work. Separate documentation can coordinate the closings, but it does not exempt anyone from licensing obligations.
Continue your preparation
Understand business value · Use the seller checklist · Explore state and city resources
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