When import distribution businesses are sold, the greatest risk is often not price — it is disruption, particularly where long-standing supplier and customer relationships are involved.
Supplier relationships, logistics arrangements, and customer continuity can all be affected if a transaction is rushed or poorly sequenced. For this long-established food distribution business, protecting those operational foundations was as important as achieving a strong commercial outcome.
ABC Business Sales broker, Daren Leng, was engaged to manage the sale with a clear focus on those operational considerations. From the outset, equal weight was given to preserving supplier relationships, maintaining operational stability and ensuring the business could transition without disruption.
The business had been built carefully over many years. It operated using third-party logistics (3PL) distribution, supported by structured customer processes and a small offshore administrative team. The model was efficient and well-managed, but it relied on coordination across suppliers, freight providers and customers. Any transition required deliberate planning and controlled phasing.
Taking the business to market
An initial approach was made to a potential buyer identified by the owner. When timing proved unsuitable, the decision was made to prepare the business for a broader market process.
A detailed business information pack was prepared for qualified buyers, supported by targeted outreach and database engagement. The focus was not simply on generating interest, but on identifying purchasers with the operational capability and financial strength to sustain the business long-term.
Within five weeks, a well-qualified purchaser engaged, at a time when discussions were already underway with another interested party. The purchaser submitted a formal proposal, and after successful negotiations, both parties reached a mutually beneficial agreement.
Why sequencing mattered
Because supplier and manufacturer relationships were central to the business, ABC Business Sales designed the transaction to proceed in clearly defined stages.
The transaction moved through:
- due diligence
- finance approval
- a two-stage supplier and manufacturer consent process
Each stage was deliberately structured so that the next step proceeded only once the prior condition had been satisfied.
That structure gave both vendor and purchaser clarity, while allowing the purchaser’s wider management team to assess integration planning without disrupting day-to-day operations.
An experienced commercial lawyer was engaged early to support documentation and ensure the approval stages progressed in the correct sequence.
Reflecting on the process, the vendor noted, “Throughout the entire process, Daren communicated in a timely and professional manner, demonstrating a deep understanding of the business-selling process and the complexities involved.”
The outcome
The business achieved a managed EBITDA of $1.2 million and was marketed at $5 million plus stock, initially valued at $800,000, reflecting a 4.83x multiple including stock.
Stock levels at settlement were slightly higher than forecast due to shipments in transit. This had been anticipated and managed through provisions agreed in the sale documentation.
For the owner, the outcome represented both a commercial result and the continuation of a business built over many years. The owner is now supporting a structured transition period, while the purchaser has integrated the business into its existing operations.
What this sale highlights for business owners
For owners considering the sale of supply-chain-dependent or distribution businesses, this transaction highlights several principles:
- Preparation and documentation influence buyer confidence.
- Timing should be guided by readiness, not urgency.
- Sequencing approvals reduces risk in complex transitions.
- Continuity can be as critical to value as headline price.
Complex businesses can be sold successfully — but structure, clarity and careful management matter.
Sold by Daren Leng, Senior Business Broker, ABC Business Sales.