Profitability is the most important metric for any distributor.
Approaching his sixties, an owner of multiple distribution companies told me he’d come to a sober realization: The habits that fueled his growth for decades wouldn’t deliver the retirement he envisioned in five years. What he needed wasn’t more revenue – it was a stronger business. He’s not an outlier. Many distributors are facing the same truth as they get closer to succession or exit.
Most distributors chase the top line: more orders, more revenue, more locations, more trucks. Growth feels good. It looks good. Industry rankings reinforce it, and competitors respect and fear it.
But when the time comes to sell the business, many leaders discover…