A Guide to Selling Your Distribution Business in Florida. It takes years of hard work and perseverance to establish a successful distribution business. A solid distribution business is characterized by efficient logistics, impeccable management systems, sufficient high-quality equipment, and invaluable customer relationships. Thus, when the time comes to sell a distribution business, you need to take the best possible measures to sell your business for the best price.
Uncertain about the selling process? Our team at TBX Florida has got your back! Take a look at what selling a distribution entails and list your business on our platform ASAP!
Here’s how it works.
The Stages of Selling a Distribution Business
So, what does selling a distribution business look like? We’ve categorized the process into four main stages:
Preparing a Sales Memorandum: The first thing you need to do is prepare a document that explains why you’re selling your business, outlines the core business objectives and its main purpose, and shares your business’s financial data. The sales memorandum should also include statistics and key insights regarding your employees, customers, suppliers, partners, and other associated parties. Interested buyers will receive this document and review it for consideration once you’re officially ready to sell your business.
Ideally, you should have interested buyers sign a non-disclosure agreement before sending them your information for added protection.
Negotiating with Buyers: Once you’ve narrowed down the buyers you want to proceed with, you can then proceed with the negotiations regarding the sale. Be patient! It’ll pay off.
Complying with the Due Diligence Process: If the negotiations went well, your buyer will reach out to you with a Head of Terms agreement. They’ll conduct the required investigation from their end to verify your business details before proceeding with the sale.
Signing a Sales Agreement: Finally, both parties sign the sales agreement which may include specific warranties or indemnities. Congratulations! You just sold your distribution business!
How Much Is Your Distribution Business Worth?
Of course, selling a distribution business is hardly as simple as it sounds. You first need to determine the value of your distribution business. This involves collecting all of your financial reports and documents and assessing the following information:
- The average sales and profits made over a specified duration
- Growth trends observed in recent and past years
- Factors driving new sales and how sustainable they are
- What is driving new sales and is that sustainable?
- The processes and systems involved in running the business
- The dependency of the business on its owner (you)
- Current market status and popularity
- The location of the business and how it affects operations and sales
These factors can help you determine what your asking price should be when you officially put your distribution business up for sale.
How Long Will It Take To Sell Your Distribution Business?
There’s no definite answer to how long selling a business may take. Rest assured, selling a distribution business is a gradual process and it may take you 9-12 months to seal the deal.
A Guide to Selling Your Distribution Business in Florida
Don’t be alarmed by this! Selling a business, irrespective of its industry, is a long-term process. Many business owners also adhere to implementing strategies midway through the process to make their company be valued at a higher price. Thus, just because it’s taking you a few months to attract potential buyers doesn’t mean you’ve been unsuccessful.
Ready to sell your distribution business in Florida? You’ve come to the right place. The Business Exchange of Florida is one of the leading business/real estate brokerage firms in Florida. We specialize in dealing with small to multi-million dollar businesses as well as commercial real estate investments. Over the years, we’ve helped countless buyers and sellers successfully actualize their investment goals, extending our services to business categories in 67 counties in the state.