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Super high volume Asian food distribution business for sale in North San Jose. Annual sales is $15,000,000. Net profit is $1,0000,000 as owner operated. Located minutes to H-Mart supermarket, Starbucks, restaurants, and shopping center. Approximately 46,000 sq ft of warehouse with 13 roll-up doors, 2 trucks, 5 walk-in coolers, 4 forklifts, 8 pallet jacks, and 4 electric pallet jacks. This price is for business only. Real Estate can be purchase separately This information has been secured from sources we believe to be reliable but we make no representations, warranties, express or implied, as to the accuracy of the information. The listing broker has been given enough information to provide only a preliminary interest in the property. The materials are not to be considered fact. The information contained herein is not a substitute for a thorough due diligence investigation. References to square footage, zoning, use, or age are approximate. Any renderings should be considered conceptual in nature and such renderings do not represent the current condition or what can or may be done to the property. Neither broker nor the landlord represents that this space is suitable for your use. Tenant or Buyer must verify the information at their own expense and bears all the risk for any inaccuracies
Why we like it
- Earnings quality looks real at $1,000,000 of cash flow on $15,000,000 in sales, a 2.5x multiple that is cheap for a distributor with this volume. The physical asset base of coolers, forklifts, trucks, and 13 dock doors implies genuine throughput rather than a paper business, though you must verify how much cash flow is owner add-backs versus clean operating profit.
- Food distribution is about as recession-resistant as it gets, since grocers and restaurants keep buying inventory in any economy. Asian food specifically carries demographic and mainstream-adoption tailwinds, so the demand curve is more durable than a discretionary consumer product distributor.
- The moat is logistical and relationship-driven. A 46,000 square foot cold-and-dry facility with 5 walk-in coolers and 13 roll-up doors near H-Mart is hard to replicate quickly, and established supplier terms plus repeat restaurant and grocery accounts create switching friction for customers who need reliable delivery.
- The location sits in a dense, high-income Asian food ecosystem in San Jose, giving an operator a captive customer base of grocers, restaurants, and retailers within a tight radius. Proximity to H-Mart and surrounding restaurants means demand and distribution efficiency are both concentrated, lowering last-mile cost.
How to improve it
- Audit and rationalize the SKU and customer mix in the first 90 days to identify which accounts and products actually drive the $1,000,000 in cash flow. Food distribution hides thin-margin volume, so cut or reprice low-margin lines and protect the profitable core before touching anything else.
- Tighten supplier terms and freight. At $15,000,000 in purchases, even a 1 to 2 point improvement in cost of goods or a shift in payment terms materially expands cash flow, and consolidating vendors or negotiating volume rebates is often the fastest lever.
- Reduce owner dependency by documenting the buying, pricing, and key account relationships. If $1,000,000 is owner-operated cash flow, a chunk of that is the owner's personal relationships and unpaid labor, so building a general manager and codifying processes de-risks the earnings and raises resale value.
- Expand the delivery radius and add routes using the existing truck and warehouse capacity. With only 2 trucks against a 46,000 square foot facility, there is likely underutilized capacity to serve more restaurants and grocers without proportional overhead increases.
- Implement inventory and route management software if the business is running on spreadsheets or paper. Better demand forecasting reduces spoilage in the coolers, improves fill rates, and turns working capital faster, all of which flow straight to cash.
- Layer in higher-margin private label or specialty imports where you already have supplier and logistics infrastructure. Distributors with strong customer relationships can capture more margin by owning a brand or exclusive product line rather than only reselling commodities.
Diligence notes
- Verify the $1,000,000 cash flow against tax returns and bank statements, and get a full add-back schedule. The description shows a suspicious figure ($1,0000,000) and revenue is listed as Not Disclosed elsewhere, so confirm the true net and how much depends on owner labor and personal expenses.
- Scrutinize customer concentration and contract terms. If a handful of restaurants or a single grocer drives most volume, the earnings are fragile, so pull an accounts receivable aging and revenue-by-customer breakdown before trusting the multiple.
- Examine the lease carefully since real estate is sold separately. Confirm the lease term, rent escalation, and renewal options on the 46,000 square foot facility, because a below-market lease that resets or a landlord who wants to sell could destroy the economics post-close.
- Inspect the equipment condition and the age of the 5 walk-in coolers, 4 forklifts, and 2 trucks. Cold storage and refrigeration are expensive to repair or replace, so factor deferred maintenance and capex into the true purchase price.
- Investigate supplier relationships, import agreements, and any exclusivity that may not transfer. In Asian food distribution, access to specific overseas suppliers can be personal to the owner, so confirm which vendor terms survive the sale and whether pricing changes for a new owner.
- Confirm working capital requirements and inventory turns. A $15,000,000 distributor needs significant working capital to fund inventory and receivables, so understand what is included in the price and what additional cash you will need to inject on day one.
Source
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