Buying a wholesale distribution business in Jacksonville and Northeast Florida

• Exclusive or authorized distribution rights, in writing, that a new owner can keep.
• A broad customer base with repeat orders, not one big retailer that sets the terms.
• Products customers can't easily buy direct from the manufacturer or online, or service (fast delivery, small minimum orders) they can't get elsewhere.
• Inventory that sells through steadily, with little obsolete stock.
• For importers, clean customs records and a good customs broker.
• Systems that track inventory, landed costs (the full cost including freight and duties) and margins by product and customer.
• Trademarks or private-label brands owned by the company, not the owner personally.
• Suppliers who know other people at the company besides the owner.

• Supplier agreements, and how dependent the business is on one or two suppliers or one country. Ask whether a supplier could start selling direct.
• An inventory count, its age, and how it's valued. Old stock is often worth far less than the books say.
• How much of sales goes to the biggest customers, and how long customers take to pay.
• Import costs: tariffs, freight, customs records and any open customs issues.
• Trademarks, domain names and marketplace accounts registered to the company. Marketplace accounts can be hard to transfer, so check each platform's rules.
• Product liability insurance and any recalls or safety complaints. An importer can be treated as the maker of a product it brings in.
• Sales tax filings, including sales into other states.

• Which suppliers would you need to introduce me to personally?
• Are any of your distribution rights exclusive, and are they in writing?
• How much of your inventory is more than a year old?
• How have tariffs and freight costs changed your margins?
• Do any of your products need special permits?
• What share of sales goes to your top five customers?
• How do customers find you, and how do they place orders?

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.

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.