Distribution Business Valuation
Distribution / Wholesale Business Valuation Calculator & Exit Planning Built for Business Owners
We built one platform that tracks your distribution / wholesale business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Distribution / Wholesale Owners Have No Idea What Their Business is Actually Worth
Current Distribution / Wholesale Valuation Multiples (2026)
Distribution / Wholesale values are strong due to increased buyer demand from larger distributors, PE, strategic acquirers. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Distribution / Wholesale Business Value
Revenue and earnings are the two most influential factors in your distribution / wholesale business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Exclusive Territories
Protected Territory
Exclusive territories or supplier relationships create defensible value. Non-exclusive distributors compete on price—exclusive arrangements create protected revenue streams.
Non-exclusive = easily replaced
Supplier Relationships
Long-Term Partners
Customer concentration under 15% reduces transition risk. Diversified customer base means no single loss devastates the business—buyers stress-test largest customer departure.
No agreements = line risk
Customer Diversification
None Over 15%
Inventory management and turns show operational efficiency. High inventory turns indicate good demand forecasting and working capital efficiency—slow turns tie up cash.
Concentrated = risky acquisition
Inventory Management
Modern WMS
Gross margin compared to industry benchmarks indicates pricing power. Distribution margins are thin—companies with above-average margins have differentiated service or products.
Manual = operational inefficiency
Gross Margin
25%+ Gross
Modern WMS and ERP systems show professional operations. Inventory management, order processing, and accounting systems indicate scalable operations ready for growth.
Low margin = commodity
Delivery Fleet
Owned Fleet
Delivery capabilities and geographic coverage impact growth potential. Distribution is logistics—strong delivery capabilities and geographic reach create competitive advantages.
No fleet = limited control
How to Value a Distribution or Wholesale Business
The U.S. wholesale distribution industry includes over 400,000 companies generating approximately $8 trillion in annual revenue. Distribution businesses serve as the critical middle link in supply chains, and their valuations reflect the strength of their supplier and customer relationships.
EBITDA is the primary valuation method for distribution businesses. Distributors typically sell for 3.0x to 6.0x EBITDA, or 2.0x to 3.5x SDE for smaller operations. Companies with exclusive distribution agreements, value-added services, and diversified customer bases command the higher end.
Revenue multiples for distribution businesses generally range from 0.15x to 0.40x annual revenue — lower than many industries because distribution is a low-margin, high-volume business. Gross profit multiples of 2.0x to 4.0x are often more meaningful.
The unique valuation factor in distribution is the supplier relationship and territory exclusivity. Exclusive or authorized distribution agreements with major manufacturers are extremely valuable because they create protected territory and guaranteed product access. Buyers evaluate the terms and transferability of these agreements closely. Warehouse capacity, logistics capabilities, inventory management systems, and delivery fleet condition also significantly impact valuation.
The distribution industry has seen consolidation as manufacturers reduce their distributor networks and larger distributors acquire regional players to expand geographic coverage. Companies with strong e-commerce capabilities and efficient warehouse operations are particularly attractive. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do distribution / wholesale businesses sell for?
Most distribution / wholesale businesses sell for 2.0x – 3.5x SDE or 0.2x – 0.4x annual revenue. However, the range is wide. Companies with strong exclusive territories can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does exclusive territories affect my company's value?
Exclusive Territories is one of the biggest value drivers for distribution / wholesale businesses. Larger distributors, pe, strategic acquirers specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my distribution / wholesale business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your exclusive territories, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys distribution / wholesale businesses?
Common buyers include larger distributors, PE, strategic acquirers, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for distribution / wholesale businesses?
Most distribution / wholesale businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (0.2x – 0.4x) are sometimes used as quick reference.
What's the fastest way to increase my distribution / wholesale business value?
The fastest improvements typically come from: 1) Improving your exclusive territories to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.