Distribution & Wholesale
Selling a distribution or wholesale business in Texas
Inventory, working capital, supplier agreements and customer concentration decide what a distributor is worth.
A distributor's value sits in relationships a buyer cannot rebuild quickly: the supplier agreements on one side, the customer base on the other, and the working capital that makes both function.
The negotiation in a distribution sale is almost always about working capital — how much stays in the business at closing, and how inventory is valued on the day.
What decides the price
What buyers examine in a distribution business
| Factor | What a buyer does with it |
|---|---|
| Working capital at closing | The single most argued term in distribution deals. Agree the definition and the target early, in writing, or it will cost you at the closing table. |
| Inventory quality, not quantity | Buyers write down slow-moving and obsolete stock. Knowing your turns by SKU before diligence is worth real money. |
| Exclusive supplier agreements | Exclusivity or territory rights are an asset — provided they survive a change of control. Check the assignment clause before you go to market. |
| Customer concentration | The most common discount in the sector. Long-standing contracted customers reduce it; a single dominant account magnifies it. |
| Fleet, warehouse and leases | Vehicles and racking are usually valued near book. The lease term and its assignability matter far more than the fittings do. |
| Margin discipline | A distributor holding gross margin through a cost cycle is demonstrating pricing power, and buyers pay for it. |
Who buys
The three kinds of buyer for this sector
National and regional distributors
Buying territory, product lines and the customer base. Usually the highest bidders where the fit is real.
Private equity
Attracted by recurring reorder patterns and fragmented sectors that can be consolidated.
Manufacturers integrating forward
A supplier buying its own route to market — often the buyer nobody thought to approach.
Proof
Some of the distribution & wholesale companies we have sold
U-Fix-It Appliance PartsAugust 2024
Tri-Tex SalesDecember 2019
Elastic By The YardApril 2015FedEx routes2010–2011Every closed transaction we publish is on the results page, grouped by industry.
Straight answers
What distribution & wholesale owners ask before they sell
Questions owners ask about selling a distribution business
What multiple does a Texas distribution company sell for?
There is no single answer, and any firm that gives you one without seeing your numbers is guessing. The multiple follows adjusted EBITDA, the quality and repeatability of the earnings, customer concentration and how much the business depends on the owner. A confidential opinion of value costs nothing and is specific to your company.
How long does a sale take?
Typically three to nine months from engagement to funds wired. We have closed in eight days and taken eighteen months. How profitable the business is, how niche it is, and how well the records hold up decide where you land.
Will my employees or customers find out?
Not from us. Your company goes to market as a blind profile. A buyer signs a confidentiality agreement and proves they can fund the purchase before they learn your name.
What should I do first?
Establish the number. Ask for a free confidential valuation snapshot, and if a sale is more than a year out, read the pre-exit work that raises it.