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Established inventory distribution and resale business operating from Iowa with more than a decade of operating history. The company generates revenue through a combination of wholesale distribution... Businesses Franchises Brokers Loading... Warehouse-Based Wholesale and Online Sales Operation Des Moines, IA (Polk County) Previous Next Asking Price:$4,000,000 Cash Flow (SDE):$1,050,000 EBITDA:Not Disclosed Gross Revenue:$6,300,000 Established:2015 Warehouse-Based Wholesale and Online Sales Operation Business Description Distribution Business with Established Vendor Relationships Established inventory distribution and resale business operating from Iowa with more than a decade of operating history. The company generates revenue through a combination of wholesale distribution and structured online sales channels supported by internal inventory evaluation processes and warehouse operations. The business sources inventory through long-standing supplier relationships and routes products through multiple fulfillment methods depending on category, timing, and inventory profile. Operations include inventory intake, product review, routing decisions, fulfillment coordination, and wholesale distribution. The company serves both direct customers and reseller relationships and has developed repeat operational processes that support order management, inventory movement, and margin control. A warehouse operation and experienced team are already in place to support day-to-day activities. Recent operational adjustments expanded inventory disposition options and created additional sales flexibility for products not suited for primary sales channels. Ownership reports improved operating efficiency and stronger margin performance following these updates. This opportunity may fit a strategic buyer seeking an established operating platform or an owner-operator looking to continue and expand existing supplier relationships. Detailed financials, supplier information, operating procedures, and additional business records may be available after buyer review and execution of appropriate confidentiality documentation. For serious inquiries, please send a message through this website and include your direct phone number and best 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#:2517524 Detailed Information Inventory: $700,000Not included in asking price Furniture, Fixtures, & Equipment (FF&E): $85,000 Included in asking price Employees: 7 Full-time 7 Full-Time + Seasonal Support Facilities: Leased warehouse facility in Iowa supporting receiving, storage, processing, and fulfillment operations. Includes warehouse equipment, shelving systems, office workstations, inventory handling equipment, and operational infrastructure necessary to support continued operations. Competition: Operates within wholesale distribution and inventory resale channels with established operating procedures and repeat sourcing relationships. Competes through inventory selection, fulfillment execution, and operational efficiency. Growth & Expansion: Pros: • Additional supplier relationships • Expanded wholesale network • Increased warehouse utilization • Additional inventory categories Cons: • Inventory availability may vary • Requires active oversight and working capital discipline • Distribution margins depend on product mix Financing: Seller financing available Terms to be discussed during due diligence and approval process. Support & Training: Seller available for transition support for up to 90 days to assist with business continuity, operational procedures, and relationship handoff where applicable. Reason for Selling: seeking a buyer positioned to continue operations and future expansion Business Location Location: Des Moines, IA Real Estate: Leased Building SF: 18,000 Rent: $11,800.00 Demographic Information for Des Moines Area Household Income Population Age Population Trend Population by Race/Ethnicity BizBuySell EDGE Financial Benchmarks for Iowa 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 855-768-3219 Voice only (no SMS) Ad#:2517524 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. Optional: Check if you want to use IRA/401k funds ($75K+) to buy a biz - Guidant will call 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 855-768-3219 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. Report an issue with this listing Similar Listings Other Wholesalers and Distributors for Sale All Businesses for Sale in Polk County All Businesses for Sale in Des Moines, IA Profitable Distribution Company with Online Expansion Opportunity IA Asking: $8,250,000 11-Year Distribution Business Des Moines, IA Asking: $4,200,000 Value Add Mall 400,000 SF on 36 AC, $11 per SF Des Moines County, IA Asking: $4,500,000 Team Up Athletics Franchise Opportunity In IA Cash Required: $25,000 ©2026 CoStar Group Send Message Listing Shared via Email a6301374279843840.cdn.optimizely.com a6301374279843840.cdn.optimizely.com is blocked This page has been blocked by an extension Try disabling your extensions. 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Why we like it
- Strong cash conversion at 16.7% cash flow margins on $6.3M revenue with a proven dual-channel model. The business generates $1.05M in cash flow while operating from a straightforward wholesale-plus-online structure, indicating disciplined inventory management and margin control across multiple fulfillment methods.
- Recession-resistant distribution model serving essential inventory needs across wholesale and direct channels. Distribution businesses typically maintain demand during downturns as both resellers and end customers still need products, while the company's flexibility to route inventory through different channels provides downside protection.
- Established supplier relationships and operational infrastructure create meaningful barriers to entry. Over a decade of operating history has built long-standing vendor partnerships, while the existing warehouse operations, inventory evaluation processes, and 7-person team represent significant switching costs for customers and operational moat.
- Capital-efficient platform with expansion optionality through additional supplier relationships and warehouse utilization. The business operates from an 18,000 sq ft facility with established systems, creating room for growth without major infrastructure investment while maintaining flexibility to expand into adjacent product categories or geographic markets.
How to improve it
- Implement dynamic pricing software to optimize margins across wholesale and online channels based on inventory velocity and market conditions. Most distribution businesses still use static pricing models, leaving 2-5% margin improvement on the table through better price optimization and real-time market adjustments.
- Develop private label or exclusive distribution agreements with 2-3 key suppliers to create higher-margin differentiated inventory. This reduces commoditization risk while building stronger supplier partnerships and improving gross margins by 5-10% on exclusive SKUs.
- Expand online marketplace presence beyond current channels to Amazon FBA, eBay Business, and B2B platforms like Faire or Alibaba.com. This diversifies revenue streams while leveraging existing inventory evaluation and fulfillment capabilities to reach new customer segments.
- Install warehouse management system (WMS) to improve inventory turns and reduce carrying costs through better demand forecasting. Proper WMS implementation typically improves inventory turns by 15-20% while reducing stockouts and overstock situations.
- Build customer segmentation and automated reorder systems for high-volume wholesale accounts. Implementing EDI connections and automated replenishment for top 20% of customers reduces order processing costs while increasing customer retention and average order values.
- Negotiate extended payment terms with suppliers while offering early payment discounts to customers to improve working capital cycle. This cash flow optimization can free up 30-60 days of working capital for growth or debt reduction.
- Develop seasonal inventory planning and pre-ordering systems to capture better supplier pricing and avoid stockouts. Most distribution businesses struggle with seasonal demand planning, creating opportunities for 3-5% cost reduction through better procurement timing.
- Create value-added services like kitting, custom packaging, or drop-shipping to justify higher margins and increase customer stickiness. These services typically command 20-30% higher margins while making the business less commoditized.
Diligence notes
- Deep dive on supplier concentration and contract terms to understand dependency risks and pricing stability. Verify that no single supplier represents more than 25% of inventory purchases and review any exclusivity requirements or minimum purchase commitments that could constrain operations.
- Audit inventory aging and turnover rates by category to identify slow-moving stock and validate the $700k inventory valuation. Request 12-24 months of inventory aging reports and verify write-down policies to ensure the balance sheet accurately reflects sellable inventory value.
- Analyze customer concentration and payment terms to assess accounts receivable quality and cash flow stability. Review aging reports, payment histories, and credit policies to identify any concentration risks or collection issues that could impact working capital.
- Validate the warehouse lease terms, including rent escalations, renewal options, and any personal guarantees that transfer with ownership. At $11,800 monthly rent for 18,000 sq ft, confirm this rate is market competitive and understand any expansion rights or restrictions in the current facility.