Supplier and distribution agreements
Exclusive territory rights, line cards, term, and assignability are often the most valuable assets on the balance sheet — and the easiest to lose in a careless transaction.
El Paso Owner's Guide · Wholesale, Distribution & Import
Distribution businesses sell on supplier rights, customer breadth, and inventory discipline. Buyers pay for exclusive lines, accounts that reorder without prompting, and stock that turns instead of sitting in the back of the warehouse.
The Local Market
El Paso sits on one of the busiest trade corridors in North America, which makes distribution here strategically interesting to buyers far outside the region. That attention rewards owners who have their supplier and customer documentation in order.
Exclusive territory rights, line cards, term, and assignability are often the most valuable assets on the balance sheet — and the easiest to lose in a careless transaction.
Recurring reorders across many accounts price far better than a handful of large relationships, however profitable those look today.
Turns, dead stock, and margin by product line tell a buyer how much capital the business truly requires and how disciplined the buying is.
Racking and capacity, fleet, freight arrangements, ERP or inventory software, and lease term all shape what a buyer can scale and what they must invest.
Free Estimator · No Email Required
Move the slider. This uses owner's discretionary earnings (SDE) — your net profit plus your salary, personal expenses run through the business, interest, depreciation, and one-time costs. Saleable inventory and working capital are typically negotiated separately.
$180,000 / year
Which of these are true today?
Illustrative Range
Estimated enterprise value
$558,000 – $918,000
That’s roughly 3.1× to 5.1× your owner’s earnings, before any real estate you own.
Every box you check is a lever you can still pull before you list. Owners who fix the books and the lease first routinely land at the top of their range instead of the bottom.
Illustration only — not an appraisal or an offer.
Step by Step
Three years of P&Ls, tax returns, and balance sheets, reconciled, plus revenue and margin by customer and product line, inventory at cost with aging and turns, receivable aging, supplier agreements, and freight costs.
Not a broker's opinion. We commission a certified valuation from an independent NACVA-credentialed appraiser — the caliber of report banks, buyers, the IRS, and courts rely on. It sets a defensible price and survives diligence.
Converting dead stock to cash and adding accounts are the two projects that most directly raise both your earnings and the multiple applied to them.
Supplier agreement assignment and change-of-control provisions, customer terms, import and customs documentation, product liability and warranty exposure, inventory accuracy versus the system, equipment and fleet titles, lease term, and unpaid taxes.
No word to your customers, your suppliers, or your competitors. We market blind on category and financial profile to vetted, financially verified buyers under NDA.
Offers, escrow, quality-of-earnings and inventory verification, supplier consents, working-capital targets, an inventory count at closing, key-employee retention, and funding. We stay on it through closing.
Costly Mistakes
Change-of-control and assignment clauses can make your most valuable asset conditional. This must be understood before you go to market, not after an offer is signed.
Concentration invites a lower multiple and a structure tied to that account. Broadening the base before listing usually beats one more year of growth.
Obsolete stock ties up capital and reduces value twice — once in earnings, once in the closing count. Convert it to cash yourself.
Buyers count. A system that overstates stock destroys credibility across the entire diligence process.
Distribution runs on inventory and receivables. How working capital is defined in the deal can move your net proceeds more than a tenth of a turn on the multiple.
Strategic buyers ask for customer and margin detail early. Staged disclosure under NDA protects the business you may still own tomorrow.
Questions Owners Ask
Straight answers, no hedging. If yours isn’t here, call us and ask it directly.
Profitable distributors commonly trade between roughly 3 and 5 times owner's discretionary earnings, with saleable inventory and working capital negotiated separately. Transferable exclusive lines, customer breadth, inventory turns, and management depth determine where you land. Only a certified independent valuation survives a lender's underwriting.
Typically it is handled separately and counted at closing, valued at cost for current, saleable goods. Obsolete and slow-moving stock is generally excluded or discounted, which is why clearing it beforehand pays you directly.
Not always. Many contain assignment or change-of-control provisions requiring supplier consent, and exclusive territory rights are frequently the most valuable thing at stake. Review them before marketing. Confirm specifics with your own counsel.
Usually as part of a negotiated working-capital arrangement rather than a simple inclusion. The definition and target matter, because they directly affect the cash you actually take home.
Qualified buyers can access SBA 7(a) financing up to $5 million, and larger transactions move to conventional structures. All require clean, reconciled financials, accurate inventory records, and a defensible independent valuation. SBA pre-qualification is a preliminary, non-binding lender assessment, not a loan commitment.
Not from us. Your business is marketed blind to vetted buyers who sign a non-disclosure agreement before they learn your name, and supplier or customer detail is released in stages at your direction.
Where we work
Whether your wholesale distribution business sits on the east side, downtown, out in the valley, or across the state line in Doña Ana County, the sale process is the same: verified financials, an independent certified valuation, and a confidential, competitive market of qualified buyers. We meet owners at a time and place of their choosing.
Wholesale Distribution Business Owners · Confidential
One confidential conversation with a partner — not a coordinator. We will tell you where your numbers put you today, what would move the multiple, and whether now is your moment.