How Much Is Your Wholesale Business REALLY Worth?

Most wholesale business owners focus on revenue, but buyers care about profit, efficiency, and risk. If you ever plan to sell—or just want to know what your business is worth—you need to think beyond top-line sales.

💰 Typical Valuation:
A wholesale business is usually valued at 3x to 5x net profit—not revenue. The stronger the margins, the smoother the operations, and the lower the risk, the higher the multiple.

📊 Balance Sheet ≠ Valuation
Your balance sheet reflects stock, receivables, and fixed assets, but that doesn’t mean you simply add them to your valuation. What matters most is cash flow and sustainable profits. Buyers pay for a business that generates money—not just one that holds stock and assets.

Key factors that determine your business’s value:

✅ Profit Margins – Revenue is nice, but a buyer wants to see how much actually stays in your pocket.
✅ Customer Concentration – Does one customer make up 30%+ of your sales? That’s a red flag for buyers.
✅ Stock Turnover – Are you sitting on slow-moving stock or do you keep inventory lean and cash flowing?
✅ Operational Efficiency – Are processes documented and automated, or does everything rely on you?
✅ Scalability – Can the business grow without huge capital investments, or is it maxed out as it is?

If you’re only looking at revenue or your balance sheet, you’re missing the full picture. The most valuable wholesale businesses aren’t just big—they’re profitable, efficient, and low-risk.

💡 Want to increase your business’s value? Start optimising today.