Buying an industrial supply distributor in Orlando and Central Florida

Orlando and Central Florida has 115 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, 80% have been in business 20 years or more. Most will never be listed for sale, and many of their owners have never been asked.

115

established companies

80%

built over 20+ years

$856k+

a year, earned by the top quarter

38%

built over 30+ years

What it takes to own one

Industrial supply distributors in Orlando and Central 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: $462,000 a year
Price about: $1.4 million
Your cash: $197,000
Could pay you: up to $208,000 a year

A strong company

Top quarter in Orlando and Central Florida

Earns about: $856,000 a year
Price about: $2.6 million
Your cash: $365,000
Could pay you: up to $385,000 a year

One of the leaders

Top tenth in Orlando and Central Florida

Earns about: $1.5 million a year
Price about: $4.6 million
Your cash: $645,000
Could pay you: up to $680,000 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	23
20 to 29 years	48
30 to 39 years	23
40 years or more	21

Estimated yearly revenue	Companies
Under $1M	9
$1M to $2M	8
$2M to $4M	9
$4M to $8M	12
Over $8M	15

County	Companies
Orange	58
Seminole	34
Marion	13
Lake	7
Other counties	3

Town	Companies
Orlando	41
Longwood	10
Ocala	10
Sanford	10
Apopka	6
Winter Park	6
Altamonte Springs	5

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 Orlando and Central Florida

The local economy

This region covers Orange, Seminole, Osceola, Lake, Sumter and Marion counties: Orlando, Winter Park, Kissimmee, St. Cloud, Sanford, Clermont, Leesburg, Ocala and the large retirement communities of Sumter and Lake counties. Tourism is what the area is best known for, built on the theme parks, the hotels, the vacation rental homes around Kissimmee and the Orange County Convention Center. It's far from the only business. The University of Central Florida and the military simulation and training offices near it support a technology base, and health care is a major employer.

Marion County is horse country, with thoroughbred farms around Ocala, and it has added warehouses and distribution centers along Interstate 75. Retirees in Sumter and Lake create steady demand for medical practices, home care, home maintenance and auto services. The building trades, restaurants, and companies that serve hotels and rental homes do well across the region.

What's different about owning a company here

Central Florida is inland, so storm surge isn't the worry it is on the coasts. Hurricanes still bring wind damage and flooding, though: Hurricane Ian flooded neighborhoods in Orange, Seminole and Osceola counties in 2022. Ask whether the business or its customers were affected.

Tourism keeps demand steadier through the year than in markets that depend on winter residents, with busy stretches around school holidays. Hotels, parks and restaurants compete hard for workers, which pushes up wages for any company that hires hourly staff. New homes have spread fast in Osceola, south Lake and southeast Orange counties and around Ocala, so check whether a company's customers are in growing areas or older ones. Traffic on Interstate 4 limits how much ground a service company can cover in a day.