Anyone have experience purchasing a distributor that has exclusive territory rights but also exclusive to only one brand?

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October 09, 2025

by a searcher from The University of Chicago - Booth School of Business in Virginia Beach, VA, USA

Curious how you'd value this situation. Really the brand / manufacturer with the###-###-#### year contract could simply end the contract so this seems a bit risky, so I'm curious whether its an asset purchase plus some amount or how you'd think about valuation ... and whether there's good comps out there in this case
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Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
Not easy to mitigate such risk unless you hold back $ contingent on renewal. The key is, how easy/difficult it is for the brand owner to switch. In most cases there is a change of control provision in contracts that voids the contract w/o brand owner approval.
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Reply by a searcher
from Duke University in Tulsa, OK, USA
I know this space well. I used to help manage our distributors when I was at Honeywell. Granted I was dealing with technical products so if you are dealing with commodity products then it can be more risk. I'd be happy to chat.
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