Wholesale Business Broker

The wholesale and distribution industry is growing and expanding, with more integrated supply chains, new opportunities like dropshipping, and better tracking and forecasting. It’s an excellent time to sell—and Jason Brice can help. 

Considering Selling Your Business in the Wholesale and Distribution Industry?

Call Jason Brice. With years of experience selling wholesale and distribution businesses in British Columbia, he can help you sell your company, maximizing the value of the sale while minimizing the time it spends on the market. Jason Brice can help you no matter what your wholesale and distribution niche is. 

Wholesale and Distribution Industry Overview

Wholesale and distribution companies in Canada are well-positioned to sell year-round, with many potential buyers interested in investing in the industry. Several factors make the Canadian market an attractive choice for investors interested in wholesale and distribution:

  • Our proximity to the United States
  • Free trade agreements with 51 other countries
  • High GDP per capita leading to higher consumer spending
  • Highly efficient supply chains lead to lower costs
  • A tech-savvy, highly connected population creating opportunities for new commerce (like dropshipping)

Wholesale and distribution companies tend to have relatively slim profit margins. As such, the most likely potential buyers for wholesale and distribution companies are other companies in the industry. These companies will look to purchase businesses that fit within their existing wholesale and distribution scheme, ideally purchasing companies that will expand their customer base or suppliers. 

Industry Drivers

Several key industry drivers can affect the sale price of a wholesale and distribution business. These drivers exist broadly, impacting the whole industry; they also exist on a smaller scale, affecting the sales price of individual businesses. Some of the broad drivers include:

  • The value of the Canadian dollar: A strong Canadian dollar can reduce the cost of purchasing goods from international suppliers but increase the price of buying from domestic suppliers. Exporting becomes more expensive with a strong dollar, and Canadians may choose to shop in the United States when the dollar is strong. As such, a strong or weak dollar can drive the valuation of your business up or down, depending on its nature.
  • Changing consumer trends: Consumer trends change constantly—if the goods you are distributing or wholesaling are popular, the price of your business will increase. The inverse is true if their popularity is waning.
  • Inflation: Inflation tends to have a negative impact on the price of wholesale and distribution industries; it increases the cost of goods, transportation, and utilities, all while decreasing consumer demand.
  • Government policy: Governments that create free trade agreements, lower taxes, and provide incentives to wholesale and distribution businesses can increase valuation; governments that do the opposite can lower valuation.

There are also a number of drivers that are specific to your wholesale and distribution business that may impact its price:

  • Supplier relationships: A well-managed supply chain featuring exclusive and long-term supplier relationships can increase the value of your business. Ideally, you’ll have a number of different suppliers to reduce reliance on a single entity.
  • Customer base: A broad customer base with clients in various regions can bolster your business—and your asking price.
  • Inventory management: Beyond your supply chain, a well-managed inventory with high-tech inventory management and tracking systems, coupled with effective demand forecasting, can boost the value of your business. 

The Process of Selling a Wholesale/Distribution Business

There are several steps that must be taken to sell a wholesale and distribution business. They include:

  • Initial consultation: The first step is ensuring that your business broker is the right fit for your needs. Jason Brice offers a free, no-obligation, no-pressure consultation to ensure that both parties are the right fit. Should you decide to work with him, you will move on to the next step. 
  • Business valuation: In this step, the value of the business is determined—this valuation will be reflected in the asking price for the business. For most small-to-medium-sized wholesale and distribution businesses, a multiple of Seller’s Discretionary Earnings (SDE) is used; this multiple is usually somewhere between 2.75 and 3.75.  
  • Marketing your business: To sell your business, you must find qualified buyers. Jason Brice will typically find buyers through existing contacts or online marketing. Occasionally, he’ll work together with other business brokers to complete the deal.
  • Pre-financing: This is a step offered by Jason Brice but not by all business brokers. In this step, information about your financial health is gathered and presented, in confidence, to banks, the BDC/SBA, and private lenders. This allows Jason to determine how much financing these organizations are likely to give to an individual looking to purchase your wholesale and distribution business. This data allows you to set a more accurate asking price and avoid circumstances where deals fall through due to lack of financing. 
  • Negotiations: Once potential buyers have been found, Jason Brice will negotiate with them on behalf of your wholesale and distribution company to get the best possible deal. These negotiations will be in line with your business goals. The aim is simple: Selling your company at the highest price possible within your parameters. 
  • Closing: Closing the deal is one of the most complex parts of any business sale: Ensuring that financing goes through, that there are no potential legal problems, and getting everyone to sign on the dotted line when the time comes. Jason Brice takes care of every part of closing the deal. 

Wholesale and Distribution Businesses Sold By Jason Brice

Jason Brice has sold a number of wholesale and distribution businesses. Some recent sales include:

Wholesale – Beauty | North Vancouver, BC
Asking Price: $1,495,000

Wholesale – Health Products | Vancouver, BC
Asking Price: $1,999,000

These are just a couple of examples of the types of wholesale and distribution businesses Jason Brice has sold. With several contacts in the industry, he can help you sell yours! 

Call for a Free Consultation

Jason Brice offers free consultations for businesses in the wholesale and distribution sector. In these consultations, he’ll help you understand industry trends, get to know your business, and tell you about his process. Interested in selling your business? Call for a free consultation today!