SELLING, WITH CLARITY
For distributors of industrial components, tools, consumables and equipment, connect supplier access, stock availability and account relationships to earnings. Product resale differs from manufacturing, even when you also provide assembly or technical support.
Start a confidential conversationWHAT A BUYER NEEDS TO UNDERSTAND
Reconcile product-line gross margin with freight, rebates, returns and discounts. Identify whether incentives are earned, estimated or conditional on future purchases. Separate product sales from installation or repair services. High sales volume may require substantial stock and credit exposure before it produces cash.
Prepare an ageing schedule distinguishing saleable stock, obsolete items, special orders, consignment and customer-owned goods. Reconcile quantities to physical counts and the ledger. Explain return rights and pledged inventory. Ask your accountant to review reserves rather than assuming the full book balance is realisable.
Collect distribution, territory, exclusivity and purchasing agreements. Identify notice, consent and termination questions for counsel, alongside single-source products and verified alternatives. A long trading history does not establish a continuing contractual right after ownership changes. Explain who maintains technical and commercial supplier relationships.
Map credit terms, receivable ageing, supplier payments and seasonal stock builds. Compare several periods consistently before discussing normal working capital. Identify account managers who can maintain service without the owner, and document warehouse leases, fulfilment processes and outstanding delivery commitments for closing discussions.
PREPARING FOR A SALE
Use this as a preparation checklist. An initial inquiry only needs your contact details and a brief introduction; keep sensitive records for a later, agreed review.
Explore business valuationFROM PREPARATION TO HANDOVER
Our business-value focus is approximately CAD5–50 million, not an annual revenue threshold. The preparation questions are editorial guidance; they do not establish a valuation, buyer interest or transferable approval.
Begin with a non-sensitive introduction. Keep customer identities, employee information and detailed financial records for a later, agreed review.
A LITTLE MORE CLARITY
That is a transaction term to define. Identify the inventory offered, valuation basis, excluded items and how closing quantities will be measured alongside other working capital.
Document the commercial dependence and agreement terms, including consent requirements. Show history and alternatives accurately; do not present untested substitute suppliers as equivalent replacements.
BEFORE THE NEXT CHAPTER
Practical reading for owners thinking about what comes next.
YOUR NEXT CHAPTER STARTS HERE
Start with a confidential conversation about selling your business. A few details are all we need to begin.
A confidential first conversation
Space to explore your options
No commitment to list your business