Wholesale and Distribution

Transforming a Wholesale & Distribution Business for Growth & Sale

The Challenge:

A value-add distributor of heavy equipment and machinery was preparing for a potential sale after experiencing significant growth over the past two years. The business, originally a sole proprietorship with $5M in revenue, had expanded its product offerings and online presence but faced key challenges:

Lack of formal business structure – The company was not incorporated, leading to tax inefficiencies and limited financial flexibility.
Scattered operations – Products were stored across multiple rented locations, increasing costs and reducing efficiency.
Limited revenue streams – The business mainly relied on one-time equipment sales, creating long sales cycles with fewer repeat customers.
Owner dependency – The business had grown primarily through the owner’s efforts, leaving little time to focus on strategy and expansion.
No structured financial reporting – The lack of detailed cost and revenue tracking made it difficult to analyze margins and optimize operations.

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Our Solution:

We worked closely with the owner to restructure, optimize, and position the business for future success—whether for a sale or continued growth.

Incorporated the business & optimized the tax structure – Ensured legal protection, better financial planning, and tax efficiency.
Secured funding & acquired a centralized facility – Assisted in purchasing a showroom and storage space, reducing rental expenses and improving operational efficiency.
Developed a financial plan & secured funding for real estate – Helped the owner acquire a strong real estate asset, aligning annual rent with ownership while adding long-term value.
Introduced new revenue streams – Built in ancillary services like attachments, tools, and warranty plans, leading to cross-selling opportunities and increased customer retention.
Strengthened the management team – Hired a controller, quality manager, and sales team, reducing the owner’s workload and creating a scalable, sustainable operation.
Built detailed financial reporting – Created product-category-based financial tracking, allowing the company to analyze costs and optimize supplier negotiations.
Negotiated exclusive supplier agreements – Used internal financial insights to secure exclusive distribution rights in Canada, creating a competitive moat.

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The Outcome:

Revenue went from $5M to $9.5M – With streamlined operations and a new management team, the business was able to scale rapidly.
Purchased & moved into a centralized facility – Reducing inefficiencies and creating a strong long-term real estate asset.
Improved margins & profitability – By tracking costs at a granular level, the company optimized pricing and supplier relationships.
Secured exclusive distribution rights – Creating a stronger competitive position in the Canadian market.
Owner rediscovered passion for the business – Instead of selling, the owner chose to continue growing with the right team and structure in place.

What started as a business preparing for sale became a success story of transformation and renewed vision. By shifting focus from day-to-day operations to strategy and growth, the owner now has a thriving, scalable, and more valuable business than ever before.

Looking to scale or prepare for a sale? Let’s help you maximize your business potential.

Connect with us for a free consultation today.

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