Diversified Agricultural Production & Wholesale Distribution, PNW, Est. 2006

$2.6M

Revenue

$597K

SDE

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Full Editorial Writeup

This is a diversified Idaho-based agricultural producer and wholesale distributor that has served national, regional, and commercial customers across the Pacific Northwest since 2006. The company produces core agricultural products and moves them into high-volume wholesale channels including major retail, landscape supply, construction, and development accounts. End markets span residential and commercial construction, civil and infrastructure projects, landscape development, lawn and garden, and institutional applications, giving it multiple demand pools rather than a single concentration.

The standout feature is an integrated transportation model. On top of distributing its own products, the company earns complementary freight revenue by booking return loads, cutting empty miles, and improving fleet utilization. That freight layer is deliberately used to smooth out the seasonally slow periods that hit most ag and landscape supply businesses, which is smart operating design and a real source of margin diversification.

At roughly $2.6M in revenue and $597k in seller cash flow, the business runs a healthy near-23 percent owner-earnings margin with a lean team of 14 full-time and 2 part-time employees. It carries substantial tangible assets: $3.45M in inventory and $600k in FF&E are included, which is unusual since inventory alone materially exceeds a typical operating multiple. The listing is positioned toward strategic acquirers, PE, family offices, and operators looking for a scalable platform with hard assets and established channels.

Why we like it

Earnings quality looks solid on paper with $596,863 in cash flow on $2.6M revenue, a margin near 23 percent that is strong for a distribution-plus-logistics operation. The freight side is a genuine second revenue engine rather than a bolt-on, since return loads convert what would be empty backhauls into incremental margin.
The moat is built on decades of operating history, established supplier and customer relationships, a nurseryman license requirement, and specialized production expertise. Those are not things a new entrant replicates quickly, and the integrated transportation model gives cost advantages that pure distributors lack.
Revenue is diversified across construction, civil and infrastructure, landscape, lawn and garden, and institutional buyers, which reduces reliance on any one channel. The infrastructure and freight buffer specifically offset the seasonality that punishes single-line ag and landscape suppliers.
The deal comes with real tangible backing: $3.45M of inventory and $600k of FF&E are included, plus a fleet of significant value. For an acquirer this means the enterprise value is anchored by hard assets, improving downside protection and asset-based lending options.

How to improve it

Pin down and separate the two profit engines in the first 90 days by building unit economics for production/distribution versus freight. Understanding true margin per lane and per product line tells you where to push volume and where you are subsidizing weak business.
Attack the empty-mile problem harder with load-matching software or a broker relationship to lift backhaul revenue further. The company already books return loads manually, so systematizing it should add high-margin freight dollars with minimal capital.
Rationalize the $3.45M inventory position, which is larger than annual revenue and likely ties up meaningful working capital. Segment SKUs by turn rate, liquidate slow movers, and free up cash that can fund growth or reduce the acquisition financing burden.
Formalize recurring supply agreements with the largest retail, landscape, and construction accounts to convert repeat but discretionary buying into contracted volume. Multi-year or standing-order commitments would smooth revenue and make the business far more defensible at exit.
Build a real sales function beyond the owner's relationships, since a 16-person shop running 8-to-5 likely underinvests in outbound. Even one dedicated account manager targeting the fragmented landscape and civil markets could add pipeline the current team has no time to chase.
Review pricing across product lines given input cost inflation in ag and freight. Distribution businesses frequently leave 100 to 300 basis points on the table by not passing through cost increases promptly, and small price moves flow straight to cash flow.

Diligence notes

The asking price is listed as a placeholder with no EBITDA disclosed, so the first task is understanding what is really for sale and at what multiple. Note the seller wants $2.4M down at 8 percent over 24 months, which implies a sizable total price and a very short amortization that will strain post-close cash flow.
Scrutinize the $3.45M inventory line closely, since it exceeds annual revenue and dwarfs typical distribution inventory. Verify it is real, salable, and not aging or obsolete, because a large chunk of the purchase consideration is effectively inventory value, not going-concern earnings.
Quantify seasonality and the freight buffer with monthly financials over three to five years. The listing leans on the transportation model to offset slow periods, so confirm how much of the $597k cash flow depends on freight and how stable those backhaul loads actually are.
Assess owner dependence given the reason for selling is simply that the owner grew it to this level, plus only a 60-day non-concurrent transition. Map which customer and supplier relationships, licenses, and production know-how live with the owner and whether the 16-person team can run without them.
Confirm the fleet's condition, age, ownership status (owned free and clear versus leased or financed), and deferred maintenance. Since freight economics and the equipment value in the deal both hinge on the trucks, capex needs here directly affect real returns.
Verify licensing and regulatory requirements, including the nurseryman license and any DOT/transportation compliance for the freight operation. A buyer who cannot obtain or transfer required licenses cannot legally run the core business.

Source

Originally listed on BizBuySell. View original listing →