Wholesale and import distribution businesses in NSW occupy a unique position in the Australian business sale market. They combine the recurring revenue characteristics of a distribution business with the brand and supplier relationship value of an import operation — and when those two elements are strong, buyers pay accordingly. The multiple range is 2.5× to 4.5× EBITDA, with the upper end reserved for businesses with exclusive supplier agreements, diversified customer bases, and stock that turns efficiently.
What the market is paying
| Business type | Typical multiple | Key driver |
|---|---|---|
| Non-exclusive importer, single product category, concentrated customers | 2.0–2.5× EBITDA | Supplier and customer concentration risk |
| Established distributor, mixed product range, B2B customer base | 2.5–3.5× EBITDA | Recurring B2B revenue + distribution relationships |
| Exclusive importer, proprietary brand, national distribution | 3.5–4.5× EBITDA | Supplier exclusivity + brand equity |
| Multi-brand importer, own-label products, diversified channels | 4.0–5.5× EBITDA | Brand portfolio + channel diversification |
Supplier exclusivity: the most valuable asset in an import business
An exclusive distribution agreement with an overseas supplier is the single most valuable asset in an import business. It creates a barrier to entry that competitors cannot easily replicate — and buyers pay a significant premium for that protection. The key questions buyers will ask about your supplier agreements are: How long do they run? Are they transferable to a new owner? What are the minimum purchase commitments? And what happens if the supplier decides to enter the market directly?
If your supplier agreements are informal or verbal, formalising them before going to market is one of the highest-return preparation steps you can take.
Stock: the asset that complicates every deal
Stock is both an asset and a liability in a wholesale distribution sale. Buyers want stock that turns quickly and is valued accurately. They do not want slow-moving inventory, obsolete lines, or stock valued at retail rather than cost. The standard approach in Australian business sales is to agree on a stock value at settlement based on a physical count at cost price, with slow-moving or obsolete stock excluded or heavily discounted.
If you have significant slow-moving stock, address it before going to market — run clearance sales, return stock to suppliers, or write it down. Buyers who discover a warehouse full of unsellable inventory during due diligence will reduce their offer by more than the stock is worth.
Customer concentration: the number buyers look at first
Wholesale distribution businesses with a single customer representing more than 30% of revenue face a difficult conversation with buyers. The risk of losing that customer post-settlement is real, and buyers price it in. The businesses that achieve the upper end of the multiple range are those where no single customer represents more than 15–20% of revenue, and where the customer base spans multiple industries and channels.
Sydney's wholesale and distribution precincts
The majority of NSW wholesale and import distribution businesses operate from Sydney's industrial precincts — Chullora, Silverwater, Lidcombe, Wetherill Park, Smithfield, and the Port Botany corridor (Botany, Banksmeadow, Mascot). Proximity to Port Botany is particularly important for import-dependent businesses, as it reduces freight costs and lead times. Buyers understand the value of a well-located warehouse in these precincts — and they price it accordingly.
What buyers are looking for in NSW right now
The most active buyers in the NSW wholesale and import distribution market are: existing distributors looking to acquire complementary product lines or customer bases; private equity-backed distribution platforms building scale; and international suppliers looking to acquire their Australian distributor rather than continue the agency relationship.
That last category — supplier acquisitions — is worth understanding. If your overseas supplier has been growing their Australian revenue through your distribution business, they may be the most motivated buyer you have. A broker who understands this dynamic can approach the supplier confidentially as part of the buyer search process.
