The Key to Selling a Warehousing & Distribution Company

The proper acquirer for your warehousing and distribution company depends upon the specific market niche you serve.

Acquirers want to understand your specific value-add.  Why are your customers doing business with you?  What keeps them from dropping your service for that of a competitor?

If your only answer is that you provide the cheapest price, or that you have a long standing personal relationship with the customer, then your company is going to be difficult to sell.  Post-acquisition you will desire to transition away from the business and someone is always willing to work cheaper.  So, these answers aren’t good enough.  If you wish to sell your company you need to have a specific market niche!  

Odds are that you’ve been marketing this niche to clients for years.  So, it shouldn’t be difficult to identify.  

Do you have rail or port access that makes you a crictical piece of your clients’ distribution network?   Do you provide quick-turn co-packing or repacking services that allows the client to meet specific customer requirements?  Are you able to house the clients dry, refrigerated, and frozen goods all at the same facility?

The nature of your niche is less important than the fact that you have one.  Having a niche is critical.  But, no answer above will make your company more marketable than another answer.  It may change who the potential acquirer will be and what price they will pay, but as long as you have a niche more substantial than a personal relationship or a price advantage, your company will attract interest from potential acquirers.

For more information, or for assistance with the sale of your warehousing and distribution company, please contact Scott Mashuda at REAG.  Bill can be reached by telephone at (216) 772-7354 or by e-mail at