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Established California-based wholesale distribution business with more than 35 years of operating history serving a broad base of repeat business customers. The company focuses on sourcing and... Businesses Franchises Brokers Loading... California-Based Wholesale Distribution Company | 35+ Years Modesto, CA (Stanislaus County) (Relocatable) Previous Next Asking Price:$20,000,000 Cash Flow (SDE):$4,050,000 EBITDA:Not Disclosed Gross Revenue:Not Disclosed Real Estate:Not Disclosed Established:1990 California-Based Wholesale Distribution Company | 35+ Years Business Description Established with Long Operating History Established California-based wholesale distribution business with more than 35 years of operating history serving a broad base of repeat business customers. The company focuses on sourcing and distributing closeout, excess, and special-purchase inventory across multiple product categories through long-standing supplier and customer relationships. Revenue is generated through recurring transactions and established buying channels developed over many years of operation. Operations are supported by an experienced internal team responsible for sourcing coordination, customer management, order processing, and vendor communication. The business maintains a structured operating process designed to support continuity and efficient execution. The customer base is diversified across multiple accounts and industries, reducing dependence on any single relationship. The business has developed repeat transaction volume through responsiveness, consistency, and long-term operating history. The company currently operates from owner-held real estate that supports business activities; however, the real estate is not included in the asking price and occupancy arrangements may be discussed with a qualified buyer. This opportunity may appeal to a strategic buyer, operator, or investor seeking an established wholesale distribution platform with existing infrastructure and operating procedures. Additional information including supporting financial records and operational details may be available following buyer qualification and execution of a confidentiality agreement. For serious inquiries, please send a message through this website and include your direct phone number and preferred time to connect. I will reach back out as soon as possible and answer your questions. Seller financing may be considered for qualified buyers. Ad#:2520920 Detailed Information Inventory: $50,000Not included in asking price Furniture, Fixtures, & Equipment (FF&E): $150,000 Included in asking price Employees: 11 Full-time Owner Operated with Management Support Facilities: Business operates from an owner-held property supporting administrative operations, sourcing coordination, customer management, and business activities. Included assets consist of operating procedures, customer records, office equipment, standard business systems, and transition support. Competition: Operates within the wholesale distribution sector serving diversified business customers. Business competes through operating history, established sourcing channels, customer relationships, and execution. Growth & Expansion: Pros:Expand sourcing relationshipsIncrease customer coverageAdd complementary product categoriesImprove market penetrationCons:Purchasing cycles may fluctuateRequires relationship managementGrowth may require additional working capital Financing: Seller financing available may be considered for qualified buyers Support & Training: Seller available for transition support following closing to assist with operational continuity and business transfer. Reason for Selling: Ownership pursuing a long-term transition and seeking a qualified buyer Business Location Location: Modesto, CA Real Estate: Owned Demographic Information for Modesto Area Household Income Population Age Population Trend Population by Race/Ethnicity BizBuySell EDGE Financial Benchmarks for California Other Wholesalers and Distributors Gross Revenue Benchmarks Cash Flow (SDE) Benchmarks EBITDA Benchmarks BizBuySell EDGE Listing Statistics Saved This Listing Listing Last Updated Appeared in Search Listing Detail Views BizBuySell EDGE Know the True Market Value Before You Make an Offer Get valuation data to negotiate with confidence. Get a Valuation Report Business Listed By: Teet Ratsep Legacy Acquisitions USA View My Listings Phone Number 754-273-9579 Voice only (no SMS) Ad#:2520920 The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Read BizBuySell's Terms of Use before responding to any ad. Learn how to avoid scams. Contact Form Full Name* Enter a valid Full Name Phone Number Enter Phone Number Email Address* Enter Email Address Optional Message Yes, send me the Buyer Newsletter for popular businesses, tips, & email promotions. Show sellers you’re serious - learn about BizBuySell Edge for premium buyer tools & alerts Send Message By clicking the button, you agree to BizBuySell’s Terms of Use and Privacy Notice Business Listed By: Teet Ratsep Legacy Acquisitions USA View My Listings Phone Number 754-273-9579 Voice only (no SMS) Your request has been sent. What Happens Next? is reviewing your details. A representative will reach out soon to discuss your options. Expect a response in 1-2 business days. 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Why we like it
- Earnings quality looks strong on paper at $4.05M cash flow against a lean 11-person team and almost no inventory carry, suggesting high asset turnover and capital efficiency. A distributor that throws off this much SDE on only $50k of stated inventory is either turning product extremely fast or running a thin-asset brokerage-style model, both of which are attractive if verifiable.
- Durability comes from 35 years of operating history and a diversified customer base with no single-relationship dependence. Closeout and excess inventory sourcing is counter-cyclical by nature: in downturns more manufacturers and retailers dump overstock, which feeds the supply side of this exact business.
- The closeout and liquidation channel benefits from a structural tailwind as retailers and manufacturers increasingly need outlets for returns, excess, and discontinued goods. This is essential plumbing in the supply chain that customers buy in good times and bad because the product is sold at a discount.
- Operator advantage exists because the value sits in supplier and customer relationships rather than proprietary tech or brand. A buyer with capital, working capital discipline, and relationship-management muscle could expand product categories and customer coverage without reinventing the model.
- Seller financing may be available and the seller has offered transition support, which lowers entry friction and signals some willingness to share risk. For a $20M deal, any meaningful seller note materially changes the equity check and the return profile.
How to improve it
- Pressure test and then systematize the sourcing engine in the first 90 days by mapping which supplier relationships drive what share of gross margin. If the closeout flow is concentrated in a few seller relationships tied to the current owner, build redundancy and formal agreements before that goodwill walks out the door.
- Layer in a working capital facility or revolving line specifically sized to capitalize on larger closeout lots. The listing flags that growth requires additional working capital, so a buyer who can deploy capital fast on opportunistic buys can take share that an undercapitalized seller had to pass on.
- Add complementary product categories that fit the existing customer base and logistics footprint. The same buyers already trust the company on closeout deals, so cross-selling adjacent SKUs is low-cost incremental revenue with no new customer acquisition.
- Build a digital sales and reorder channel to reduce dependence on relationship-driven phone and email transactions. A simple B2B portal with available-lot listings would widen customer coverage and create a more transferable, less owner-dependent revenue stream.
- Negotiate a defined occupancy arrangement on the owner-held real estate before close and model the true rent expense into go-forward EBITDA. Because the building is excluded, the reported $4.05M cash flow likely does not carry a market-rate rent, and that adjustment could meaningfully change the real multiple.
- Tighten reporting and KPI tracking around inventory turns, gross margin by category, and customer concentration. A boring distributor like this compounds when you measure unit economics weekly and reallocate buying capital toward the highest-margin, fastest-turning categories.
- Identify and retain key sourcing and customer-facing employees with incentive structures. With only 11 staff, two or three people likely hold most of the relationship value, and locking them in is cheaper insurance than discovering churn after close.
Diligence notes
- Demand undisclosed gross revenue and verify the $4.05M cash flow against tax returns and bank statements. A closeout distributor with $50k of inventory and $4M of SDE implies an extraordinary turn rate or significant consignment/brokerage dynamics, and you need to understand exactly how the dollars flow before trusting the multiple.
- Scrutinize customer and supplier concentration despite the diversified claim. Get actual revenue and gross profit broken out by top 10 customers and top 10 suppliers, because in closeout businesses the supply side is often more concentrated and fragile than the listing language suggests.
- Clarify the real estate occupancy terms and what market rent would be. Since the building is owned by the seller and excluded, confirm whether reported cash flow includes any rent expense, and rebuild EBITDA with a true arms-length lease to see the real earnings.
- Investigate sustainability and repeatability of the closeout sourcing pipeline. These deals can be lumpy and opportunistic, so examine year-over-year revenue and margin volatility to determine whether the $4.05M is a stable run rate or inflated by one or two outsized buys.
- Confirm the reason for sale and the owner's true day-to-day role. The seller cites a long-term transition rather than a clean reason, so probe how many supplier and customer relationships run directly through the owner and how the business performs once that person steps away.