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Small Distribution Business Valuation Formula: |
| Distribution Businesses: This is a general small business valuation formula or method for small distribution businesses based on a percentage of annual gross revenues that can be used to help determine an approximate value and asking price to market an established distribution business for sale. |
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Distribution Valuation Formula (General): Approximately 50% of annual gross sales + inventory. |
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Broker Comments: I have found that established and profitable distribution businesses are generally highly sought after by small business buyers. I have seen a few even supporting higher valuations based on the types of products distributed and their gross profit margins and number of clients. Customer concentration (having just a few large clients) can be a potential negative when selling. |
| Need a business valuation or appraisal report for legal, personal, or selling purposes? Request A free & confidential preliminary business valuation consultation about your established distribution or wholesale business here. |
