 |
|
 |
 |
| Popular Biz Valuation Formulas: | |
| All Categories | |
Site Directory |
|
|
|
|
|
|
Small Distribution Business Valuation Formula: |
| Distribution Businesses: This is a general small business valuation formula or method for small distribution businesses and distributorships 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. |
|
Distribution Valuation Formula (General): Approximately 50% of annual gross sales + inventory. |
|
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 a distribution business. |
