Has anyone acquired or invested in distributor businesses?
Trying to figure out what the multiples should be? It's a scale business with about $2.5m EBITDA
Also, any considerations? This one is a steel distributor
Multiples / considerations for distributor businesses
by a searcher from Duke University - The Fuqua School of Business
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Steel in particular would have a couple call outs. As ^Searchfunder membermentioned, steel will have considerable commodity price risk. High weight products will also limit how far products can economically be delivered to end customers so it is possible to carve out a local niche but expanding to new locations may require investments in new facilities. Feel free to reach out directly if you would like to discuss.