Buying a wholesale distribution business in Space Coast and Volusia

• 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 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.