Operating businesses / seller introductions
Sell an Industrial Distribution Business
Inventory and sales volume are only part of the picture. San Jose Business Brokers Ltd helps owners start a valuation review of cash flow, supplier relationships and the capital a buyer must keep in the business.

Prove the margin after stock and service costs
Separate product revenue from delivery, installation or service income. Buyers need to understand the margin after freight, payroll and other ordinary costs, not just the gross sales line.
Review rebates and unusual credits with your CPA. A one time benefit should not be presented as recurring operating earnings.
Agree what the price includes
Clarify inventory, receivables, cash and debt early. An apparent price agreement can unravel if the seller expects to keep working capital that the buyer expects to receive.
Aged or slow moving inventory may need a different treatment from saleable stock. Prepare an aging report and a plan for a physical count near closing.
- List stock that is obsolete, consigned or customer owned.
- Explain seasonal cash needs and purchase commitments.
- Identify vendor agreements requiring buyer approval.
Reduce reliance on a few relationships
A buyer will ask what happens if a large customer or sole supplier leaves. Show the actual customer mix, including independent accounts grouped under one billing name.
If personal relationships drive orders, set out a transition schedule with introductions and clear limits on your role. Avoid leaving the length of your obligation for closing week.
Keep the records current
Current statements, reconciled accounts and an accurate stock list shorten avoidable disputes. They also help a valuation partner distinguish a profitable operation from one that needs more cash than its earnings suggest.
Keep the sale moving
- Review the earnings adjustments
- Check customer concentration
- Request your confidential seller valuation
Use the valuation form to outline your sale, or call (408) 555-0179.