How to Sell a Wholesale & Distribution Business
Wholesale and distribution businesses achieve EBITDA multiples of 3.5–5.5× from trade buyers seeking supply chain integration, geographic coverage, or exclusive distribution rights. Businesses with exclusive agency or distribution agreements, strong customer credit records, and owned warehouse and logistics infrastructure command premium multiples from a broad pool of strategic acquirers.
Who Buys Wholesale & Distribution Businesses?
Larger wholesale groups seeking product range or geographic expansion. Manufacturers vertically integrating distribution capability. PE-backed distribution consolidators. Individual operators with trade and logistics experience.
What Drives Value in a Wholesale & Distribution Sale
Exclusive or preferred distribution agreements with major manufacturers or brand owners. Long-term supply agreements with major retail groups or buying consortia. Owned warehouse infrastructure reducing buyer property costs. Strong debtor book with low bad debt history. Automated pick-and-pack systems and efficient warehouse management increasing throughput.
Common Due Diligence Concerns
Distribution and agency agreement novation — manufacturer principals must consent to the change of distributor. Exclusive agreement terms must be reviewed for change-of-control provisions that might allow termination. Inventory valuation at completion — stock at cost versus market value and slow-moving lines. Customer credit terms and debtor quality must be assessed. HGV fleet maintenance compliance if own delivery vehicles are operated.
Typical Sale Timeline
A wholesale & distribution business typically takes 5–9 months to sell from preparation to completion.
What Is a Wholesale & Distribution Business Worth?
EBITDA multiples for wholesale & distribution businesses in the UK range from 3.5–5.5×. See our full Wholesale & Distribution valuation guide.