Buying an industrial supply distributor in Jacksonville and Northeast Florida

Jacksonville and Northeast Florida has 64 established industrial supply distributors by our count: companies in business at least 15 years that still file with the state every year and aren't part of a larger group. Of those, 86% have been in business 20 years or more. Most will never be listed for sale, and many of their owners have never been asked.

established companies

86%

built over 20+ years

$771k+

a year, earned by the top quarter

39%

built over 30+ years

What it takes to own one

Industrial supply distributors in Jacksonville and Northeast Florida come in every size. Here's what owning one could look like at three levels, from a solid company to one of the leaders, with a small business loan covering most of the price.

A solid company

Earns about: $323,000 a year
Price about: $985,000
Your cash: $138,000
Could pay you: up to $145,000 a year

A strong company

Top quarter in Jacksonville and Northeast Florida

Earns about: $771,000 a year
Price about: $2.4 million
Your cash: $329,000
Could pay you: up to $347,000 a year

One of the leaders

Top tenth in Jacksonville and Northeast Florida

Earns about: $1.7 million a year
Price about: $5.1 million
Your cash: $719,000
Could pay you: up to $759,000 a year

Earnings are owner earnings: profit plus what the owner pays themselves, before loan payments and taxes. They and the prices are our estimates from public records, not the owners' figures, and we value companies like these at about 3.0 times a year's owner earnings. Your cash covers the down payment and closing costs, and what the business could pay you is what's left after the loan payments and the cushion lenders require. The more cash you bring, the further up you can go.

Age, size and location

Revenue is our estimate from public records, grouped into wide ranges.

In business	Companies
Under 20 years	9
20 to 29 years	30
30 to 39 years	11
40 years or more	14

Estimated yearly revenue	Companies
Under $1M	4
$1M to $2M	6
$2M to $4M	7
$4M to $8M	6
Over $8M	8

County	Companies
Duval	57
Other counties	7

Town	Companies
Jacksonville	54

What the best industrial supply distributors have in common

Authorized supplier lines in writing, with territories and terms that can survive a change of owner.
Many customers, none a large share of sales.
Margins (what's left after the cost of goods) that hold up, set by a pricing system, not each salesperson's gut.
Inventory that sells regularly, with little dead stock on the shelves.
Salespeople with long customer relationships who are likely to stay, paid to reward profit, not just sales.
An inventory and accounting system that tracks costs, stock levels and what each customer buys.
Services that keep customers loyal: repairs, assembly, or managing stock at the customer's site.

What to check before you buy

Supplier agreements: length, how they can be ended, territory, and whether a new owner needs the supplier's consent. Losing a major line can cost a large share of sales.
Inventory: a physical count, how long items have sat, and how slow-selling stock is valued in the price.
Sales and margin by customer, and how much rides on the biggest few.
Overdue customer bills and bad debts; contractors can be slow payers.
Supplier rebates and incentives, and whether they depend on volumes the business may not keep.
Sales tax filings and exemption certificates. Missing certificates can become tax bills after an audit.
The warehouse lease, and the condition of trucks, forklifts and racks.

Questions to ask the owner

Which supplier lines matter most, and have you told them you might sell?
Who are your biggest customers, and who looks after each one?
How much stock hasn't sold in a year?
How much of your profit comes from supplier rebates?
What do customers buy from you that they can't get quickly elsewhere?
Which salespeople would customers follow if they left?
How has online competition affected you?

To learn what these companies do, which licenses they need and how ownership works, read our full guide to buying an industrial supply distributor in Florida.

Owning a company in Jacksonville and Northeast Florida

The local economy

This region covers Duval, St. Johns, Clay, Nassau, Baker and Putnam counties: Jacksonville, Jacksonville Beach, St. Augustine, Ponte Vedra Beach, Orange Park, Fleming Island, Green Cove Springs, Fernandina Beach, Yulee, Macclenny and Palatka. Jacksonville merged with most of Duval County in 1968, which makes it the largest city by land area in the lower 48 states.

The economy leans on logistics, the Navy and financial services. Logistics runs through JAXPORT, major rail lines and the meeting of Interstates 95 and 10. The Navy has Naval Air Station Jacksonville and Naval Station Mayport. Insurance and health care matter too. St. Augustine, founded by the Spanish in 1565, and Amelia Island draw steady tourism. Trucking and logistics firms, the building trades, medical practices and home services all fit this market.

What's different about owning a company here

Northeast Florida is less seasonal than South or Southwest Florida, with fewer winter residents and more year-round employers. Direct hurricane landfalls have been less common here than on other parts of the coast, but storms still bring flooding along the St. Johns River and the beaches, so check insurance costs and flood zones.

Military families bring skilled workers and working spouses into the labor pool, though they also move on when orders change. St. Johns, Clay and Nassau have added the most new homes, and companies serving those suburbs have grown with them. Georgia is close, and some companies here serve customers across the state line. Work in Georgia may need Georgia licenses, so ask how much revenue comes from there and who holds those licenses.