Start your distribution company sale with Albuquerque Business Brokers Edge and bring the questions below to the people helping you prepare.
Sort inventory before discussing price
Separate inventory that sells quickly from slow or obsolete stock. Use records that show age and sales history rather than assuming everything is worth its original purchase cost.
Identify consigned goods, stock owned by customers and inventory pledged under financing. Those distinctions affect what is actually available to transfer.
Prepare a receivables aging report alongside inventory. Strong sales can still leave a business short of cash if customers take too long to pay.
Look closely at supplier access
Review distribution rights, territory limits and volume rebates. A buyer needs to know whether a supplier relationship continues after the sale or requires approval.
Explain whether sales staff or the owner hold key accounts. Document account history without giving a prospective buyer unrestricted customer access before confidentiality is in place.
Plan the handoff of working capital
A sale price conversation should address the inventory, receivables and payables needed to keep the business operating. Your advisors can negotiate how those items enter the agreement.
If your Albuquerque operation also owns its warehouse, evaluate the property separately. Business earnings and the property arrangement need to make sense together.