Sell My Distribution Business

You may be asking yourself, "what’s the best way to sell my distribution business for the highest value?" Here are five steps to help you with selling a distribution company in the lower middle market category.

Step One: What is My Distribution Company Worth?

Before you can sell a distribution company, you need to figure out how to value a distribution business. You can find the value by getting a Broker's Opinion of Value from a licensed merger and acquisition broker. 

RBS M&A Advisors use your company's financial statements, market data, expenditures, assets, income, and competitor information to calculate the worth.

M&A business broker calculate the earnings Before Interest, tax, depreciation, and amortization or seller's discretionary earnings to find the net income. Then, the advisor uses the market, revenue, and asset approach to determine the business' value three times. Finally, they weigh each calculation to get the business valuation.

The worth involves things like:

• Favorable location
• Profit and sales
• Sustainability
• The driving force behind sales
• Growth trends
• Market position
• Dependence on the owner
• Where customers come from and why
• What processes and systems run the company

After speaking to a broker, you should have a better idea of the worth of your distribution company. 

Step Two: How to Increase the Value of My Business

Potential buyers flock to high-value businesses. You came here asking, "how can I sell my distribution business?" The answer is simple.

To make your wholesale distribution business more attractive to buyers, you should increase the value. 

Raising these metrics will help:

• Customer growth statistics
• Clean legal history
• Predictable sales drivers
• Established and backup suppliers
• Growth potential
• Repeat purchases and sales
• Documented processes and systems
• Growing new customers from multiple channels

Here are a few tips to boost its worth.

• Work with an outside advisor who knows how to value a wholesale business
• Boost your retained earnings to prove your profitability
• Explore wholesale distribution industry trends to see if you can sell more products or reach new markets to diversify the customer base
• Make a formal business plan with achievable milestones for cutting costs and boosting sales
• Ensure your management team can run the business
• Lower your business's risk profile
• Earn revenue from multiple channels
• Improve the cash flow position of your company
• Train your employees well
• Keep detailed records of your finances
• Automate operations where possible
• Work on the appearance of the brick and mortar establishment
• Improve the speed and appearance of your website
• Pay off debt
• Dominate your niche by setting yourself apart from competitors

Following these tips will help you outshine competitors. 

How to Build a Business to Sell

When building a company in the wholesale and distribution industry, make sure you rely on little to no competition in case they go under. Brand yourself with an eye-catching name and logo fit for your target audience. Try to research the market thoroughly to fulfill the consumer's needs. 

You can grow the business by understanding existing customers and fishing for more. Find what people like and seek to go above and beyond. Expand your online presence, use affiliate marketing, and engage in A/B testing strategies to advertise to new markets.

Lastly, you can make it more viable to buyers by increasing automation, writing a reasonable business plan, and hiring a professional broker. Automating what you have going on now will make the transition smoother, and a business plan will give buyers an idea of what to expect.

As mentioned throughout, a distribution wholesale CA professional business broker can handle every aspect of selling your distribution business for great value. 

Step Three: How to Prepare My Wholesale Distribution Business for Sale

You may want to sell your wholesale distribution business if you're going to start a new one, feel exhausted, are ready to retire, or maybe have recently gotten a divorce. Selling your distribution company gives you a lot of cash to use at your discretion, and it frees plenty of time.

When positioning your wholesale distribution business for sale, figure out who can be the best fit professional to sells it. You can handle the sale yourself if you have a small company, but medium to large ones require a business broker or investment banker.

Next, determine what kinds of businesses would want to buy your company, like competitors or those who sell similar products. Then, identify specific companies in these categories. Research them with a Strengths, Weaknesses, Opportunities, Threats analysis to see what your company could do for them. 

Try to contact them to help them recognize your business's value and influence them to choose you.

Leave a positive first impression by having your finances and legal paperwork organized. Keep in contact with a financial advisor and gather a solid M&A deal team.

Step Four: Hire a Merger and Acquisition Broker

Even lower mid-market wholesale and distribution business owners would benefit from hiring M&A advisory firm in California.

They help in multiple ways, such as:

• Ensuring you meet legal guidelines
• Performing a business valuation
• Helping you close the deal faster
• Preparing your distribution companies for sale
• Marketing the sale to qualified buyers

California licensed mergers and acquisitions brokers can maximize the selling price as they have experience. They can handle the unfamiliar selling process and attract buyers you hadn't thought of.

Selling your distribution business in California is challenging, so they manage the complicated steps as you move on to the next phase of your life.

Other steps that an M&A advisor can assist with include:

• Defining the reasons and processes behind leaving
• Valuing the business
• Increasing the business value
• Organizing financial statements and legal paperwork
• Finding qualified buyers and reaching agreements
• Following legal guidelines and signing documentation
• Transitioning the company to new ownership

You do not have to do it alone when making the decision to sell your distribution company. 

Step Five: Closing the Sale on How to Sell My Distribution Company, California Wholesale Distribution

You probably came here asking, "how can I sell my distribution business?" It takes time, but you can do it if you have a merging and acquisitions advisor to guide you along the way.

Selling a wholesale distribution business requires you to value your company and boost its worth. You then prepare it for sale by building and growing it before hunting for buyers, and close the deal.

Professional M&A advisors work with these tasks regularly, and they know how to get you an outstanding profit from your company. What are you waiting for?

If you are a retiring business owner looking to exit your lower middle market distribution company in California, here are six tips to get you started:

1. Don't wait until the last minute to start planning your exit. The process of selling a lower middle market wholesale distribution business can take a long time, so it's important to start early.

2. Have a clear idea of what you want to get out of the sale. Know your goals and what you're willing to negotiate.

3.  Know what's your company's worth. This is an essential step to take when planning to sell your distribution business in California.

4. Choose the right type of buyer. Not all buyers are created equal, so do your research and find the right one for your business.

5. Be prepared for a lot of due diligence. M&A buy-side due diligence is when buyers will want to know everything about your business, so be ready to provide documentation and answer questions.

6. Be flexible with the terms and conditions of the deal. It's important to be open to  negotiation to get the best possible deal for your business.

Rogerson Business Services, also known as, California's lower middle market business broker is a sell-side M&A advisory firm that has closed hundreds of lower middle-market deals in California. We are dedicated to helping our clients maximize value and achieve their desired outcomes. 

We have a deep understanding of the Californian market and an extensive network of buyers, which allows us to get the best possible price for our clients. We also provide comprehensive support throughout the entire process, from initial valuation to post-closing integration. 

Our hands-on approach and commitment to our client's success set us apart from other firms in the industry. If you consider selling your lower middle market distribution business, we would be honored to help you navigate the process and realize your goals.

If you have decided to value and then sell your lower middle market wholesale distribution company or still not ready, get started here, or call toll-free 1-844-414-9600 and leave a voice message with your question and get it answered within 24 hours. The deal team is spearheaded by Andrew Rogerson, Certified M&A Advisor, he will personally review and understand your pain point/s and prioritize your inquiry with Rogerson Business Services, RBS Advisor

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More Tips to Help Sell a Lower Middle Market Distribution Company