Import and Distribution Businesses in Australia: What Buyers Pay

Import and Distribution Businesses in Australia: What Buyers Pay

Richard MatthewsRichard Matthews — Business Broker, Link Business NSW·Apr 29, 2025·4 min read

Import and distribution businesses in Australia — businesses that source product from overseas suppliers and sell into the Australian market through wholesale, retail, or direct B2B channels — trade at 2.5× to 4.0× EBITDA. The multiple depends almost entirely on two things: supplier exclusivity and customer diversification.

What the market is paying

Business typeTypical multipleKey driver
Single supplier, no exclusivity, commodity product2.0–2.5× EBITDASupplier can be replicated by a competitor
Multiple suppliers, diversified customer base, own brand2.5–3.0× EBITDAReduced single-point-of-failure risk
Exclusive distribution rights, established customer relationships3.0–3.5× EBITDAExclusivity creates a defensible market position
Exclusive rights + own brand + multi-channel distribution3.5–4.5× EBITDAStrategic asset — hard to replicate

The exclusivity question

Exclusive distribution rights are the single most valuable asset in an import business. If you hold exclusive rights to distribute a product in Australia — and those rights are documented in a current agreement with a reasonable term remaining — buyers will pay a meaningful premium.

If your supplier relationship is informal, or if the agreement expires in less than 12 months, buyers will price that risk in. The first thing a buyer's lawyer will ask for is the supplier agreement. If it does not exist in writing, the deal will either stall or the price will reflect the uncertainty.

Stock: asset or liability?

Import businesses carry stock, and stock is both an asset and a complication in a sale. Buyers will want to understand:

  • How much stock is current and saleable vs aged and slow-moving
  • Whether the stock level is normal or inflated ahead of the sale
  • What the stock turnover rate is and how it has trended

Stock is typically sold separately to goodwill — at cost, with adjustments for aged or obsolete inventory. Sellers who inflate stock levels before a sale create problems at settlement when buyers conduct a stock count.

Currency risk and supply chain

Buyers of import businesses are acutely aware of currency risk. If your margins are denominated in AUD but your costs are in USD, EUR, or CNY, buyers will want to understand how you manage that exposure. Businesses with hedging strategies or long-term supply agreements with fixed pricing are more attractive than those exposed to spot rates.

NSW and QLD: where import businesses concentrate

The majority of Australian import and distribution businesses are based in NSW (Western Sydney, Parramatta, Blacktown) and QLD (Brisbane, Gold Coast). Proximity to port infrastructure and major logistics hubs drives this concentration. Buyers in these markets include trade acquirers, private equity, and international principals looking to acquire their own distribution channel.

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