Buying an industrial supply distributor in Space Coast and Volusia

• 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.

• 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.

• 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?

This region covers Brevard, Volusia and Flagler counties: Melbourne, Palm Bay, Titusville, Cocoa, Cocoa Beach, Merritt Island, Daytona Beach, Port Orange, Ormond Beach, DeLand, Deltona, New Smyrna Beach and Palm Coast. Brevard's economy is built around space. Rockets launch often from Kennedy Space Center and Cape Canaveral Space Force Station, and aerospace and defense manufacturers and their suppliers employ engineers, technicians and machinists across the county. Port Canaveral is a major cruise port.

Volusia depends more on tourism, beaches and big events, with Daytona's motorsports and motorcycle rallies drawing crowds. Health care and a large retired population matter too. Flagler County, around Palm Coast, is mostly residential. Machine shops, electrical and engineering firms, home service companies, marine businesses and restaurants all have a place here.

Brevard's fortunes follow the space and defense programs. A company that sells to aerospace firms should be able to show you how many customers it depends on and how secure their work is. Business in Volusia spikes around big events and the winter season, so look at revenue by month.

The whole coast faces storm risk. In 2022, Hurricane Ian brought flooding to much of Volusia, and Hurricane Nicole, which came ashore near Vero Beach six weeks later, washed away beaches and seawalls along the Volusia coast. Beachfront property needs careful insurance and structural checks. The Indian River Lagoon and the St. Johns River make boating and fishing part of daily life, which keeps the marine trades busy. Palm Coast and the Palm Bay area have added many new homes, and companies serving those areas have grown with them.