Review Earnings and Records
You provide financial results and explain unusual expenses, owner responsibilities and recent changes. We assess which earnings adjustments need support and which costs will continue after a sale.
For Distribution and Wholesale Owners
Distribution Business Valuation
Understand what drives your company’s value. Start with a free review of earnings, inventory, working capital and the relationships behind your revenue.
Confidential inquiry. No obligation to sell.
Request a Free Business Valuation
Start with basic company details and your goals. You do not need a full document package.
The SeaRidge Advisory team reviews your inquiry.
* Required fields. Other fields are optional. Share sensitive records only through an agreed process.
If an earnings figure is not readily available, leave it blank. We can clarify the appropriate measure in the conversation.
Privacy PolicyThe Review
What Your Valuation Review Covers
We work through the company’s financial and operating picture with you, then discuss what the available evidence supports. The form starts the conversation; it does not generate an instant price.
Assess Value and Continuity
We consider relevant market evidence alongside inventory quality, customer and supplier concentration, margins and management depth. Missing records or uncertain transfer rights become questions to resolve, not optimistic assumptions.
Discuss the Findings
The discussion gives you a company-specific view of value, the assumptions behind it and the issues that could change it. You can use that context to plan ahead, examine a buyer approach or explore a sale.
This is a brokerage valuation review, not a certified appraisal or a guaranteed sale price. A formal tax, litigation or lending appraisal may require a separately qualified professional.
The Earnings Basis
SDE, EBITDA and Sustainable Earnings
A valuation starts by deciding which earnings measure fits the business and reconciling that measure to the records. Revenue alone does not establish value.
Owner-Operated Companies
Seller’s discretionary earnings (SDE) may be useful where one working owner is central to the business. Review the owner’s compensation and duties together. A buyer still needs to understand the work and any replacement cost.
Management-Led Companies
Earnings before interest, taxes, depreciation and amortization (EBITDA) may be more relevant when an operating management team is in place. Necessary management compensation remains a business expense.
Supported Earnings Adjustments
Document each proposed adjustment. Owner expenses, one-time costs and unusual income require evidence; recurring expenses cannot simply be added back because doing so raises the number.
Margins That Can Continue
Separate durable gross profit from temporary price increases, product shortages or unusual rebates. Check freight, discounts, returns and product mix against the periods being compared.
Income, market and asset approaches may inform the review. Their relevance depends on the company’s earnings, asset requirements and available evidence; they are not three automatic answers to average together.
Distribution Economics
What Affects Distribution Business Value?
Buyers need confidence that earnings can continue under new ownership. These operating facts help explain why two distributors with similar profits may be valued differently.
Customer Revenue
Review concentration, repeat orders and gross margin by account. Identify relationships held personally by the owner and how those accounts would be handed over.
Supplier and Territory Rights
Check supplier dependence, line cards, rebates, exclusivity and required consents. A valuable product line is not automatically transferable to a new owner.
Inventory Quality
Reconcile stock records to aging, turns and reserves. Slow-moving, obsolete or consigned inventory should not be treated the same as saleable stock the company owns.
Working Capital Needs
Examine receivables, payables, purchasing cycles and seasonality. Growth can require additional cash for inventory and customer credit before it produces cash receipts.
Warehouse and Reporting Systems
Reliable stock counts, purchasing records and margin reports help substantiate performance. Identify gaps between accounting records and warehouse or order-management systems.
Management and Owner Dependence
Map who handles pricing, purchasing, key accounts and warehouse decisions. The review considers what the team can sustain when the owner steps back.
Transaction Economics
Business Value Is Not Your Sale Proceeds
A headline value does not tell you how much cash reaches you at closing. The asset perimeter, balance sheet and payment terms must be understood together.
Inventory and Working Capital
Inventory is not automatically added on top of an earnings-based value. The agreement defines what transfers, the normal operating level and how obsolete, excess or seasonal stock is treated.
Cash, Debt and Closing Adjustments
The treatment of cash, debt and working-capital adjustments depends on the deal. Fees and taxes also affect the amount you retain. A business valuation is not a calculation of after-tax proceeds.
Cash Now and Payments Later
Seller financing, earnouts and retained equity are different from cash at closing. Consider when payment is due, whether it is conditional and what risk or ownership remains with you.
Market Evidence and Multiples
A multiple only helps when the earnings basis, business characteristics and transaction terms are comparable. An industry average cannot settle a company-specific value or guarantee an offer.
Preparing for the Discussion
Records That Support the Review
Start the inquiry now. We can clarify which records are needed and how to share sensitive information before you send a detailed package.
Financial Results
Recent annual and current-year income statements, balance sheets and tax returns, plus support for proposed earnings adjustments.
Stock and Working Capital
Inventory aging and turns, reserves, receivables and payables aging, and an explanation of seasonal purchasing needs.
Customers and Suppliers
Concentration summaries, margin trends, supplier terms, rebates and any line-card or territory transfer requirements.
People and Operations
Your daily responsibilities, management roles, warehouse arrangements, key systems and any operational changes affecting results.
Valuation Questions
Distribution Business Valuation FAQs
What to expect before you request a review.
Is the business valuation free?
The initial brokerage valuation review is offered free of charge. Submitting a request does not require you to list or sell the company. Any later advisory engagement would be a separate decision with its own agreed scope and terms.
What will I receive from the review?
The review supports a discussion of your company’s value, the evidence and assumptions behind it, and the risks or missing information that could change the conclusion. The request form does not generate an instant estimate. Any specific reporting requirements should be discussed at the outset.
Is inventory added to the value of a distribution company?
Not automatically. Inventory quality and normal operating requirements must be considered alongside the earnings basis and proposed transaction structure. The agreement determines what transfers and how normal, excess, obsolete or consigned stock is treated. Adding all inventory to an earnings-based value without checking those assumptions can double-count it.
Can I request a valuation before I am ready to sell?
Yes. A review can help with planning or evaluating an unsolicited buyer approach. Tell us your goals and timing. An inquiry does not authorize buyer outreach, public marketing or a listing.
How long does the review take?
Timing depends on the quality and availability of records, the complexity of the business and the questions being evaluated. We can discuss the required information and timing after reviewing the initial inquiry; the form does not promise a fixed turnaround.
Is this a formal appraisal?
No. This is a brokerage valuation review for owner planning and potential sale decisions. It is not represented as a certified appraisal for tax, litigation, lending or other formal purposes, and it does not guarantee a transaction price.
Your Next Decision
Request Your Business Valuation
Tell us about your distribution company and the decision you are weighing. We will clarify the information needed for a useful review.
You decide whether the next step is preparation, a valuation discussion or exploring a sale.