Sell a Wholesale Supply Business

Stock, supplier terms and earnings need to support the same asking price. Through Las Vegas Business Brokers Firm, you can discuss those questions with an independent valuation partner.

Put stock quality beside the earnings

Separate saleable inventory from obsolete or damaged items. Use a dated stock report and explain how the accounting value relates to what a buyer can actually sell.

Clarify whether the proposed price includes a normal inventory level or adds inventory separately. Without that agreement, two parties can quote the same price and mean very different cash requirements.

Discuss a closing inventory count and how differences will be settled. Heavy inventory can make financing harder when the cash flow does not support the total acquisition cost.

Show the terms supporting customer and supplier relationships

List major customers and suppliers by revenue or purchases in an anonymized summary. A distributor with one essential supplier has a risk even when its customer base looks broad.

Review payment terms, assignment provisions and any territorial rights. Do not promise that a preferred agreement continues unchanged unless the relevant parties have confirmed it.

Document the people who price orders, manage stock and collect balances. Buyers need to know whether those functions stay with the business when the owner leaves.

Define working capital early

Receivables, payables, inventory and customer deposits affect cash needed after closing. Decide which balances transfer before treating an offer as money available for you to take home.

Prepare current statements and reconcile them to the books. Stale inventory or receivable reports create uncertainty that can lead to holdbacks or a revised offer.

Keep running the business while advisers examine a sale. Delaying collections or purchases simply to make the closing position look better can create a problem in diligence.