Nondurable Goods Wholesale & Distribution Business Valuation Benchmarks

Business owners and prospective buyers rely on a diverse set of financial benchmarks to assess the value of a business. We have compiled data from current BizBuySell listings and sold businesses to provide insight into the business-for-sale market and important benchmarks for pricing and evaluating nondurables wholesaler and distribution businesses relative to industry standards.

Jump To:

Highlights of Nondurable Goods Wholesale & Distribution Businesses Sold on BizBuySell

Nondurable goods wholesale and distribution businesses listed and sold on BizBuySell are primarily made up of food, beverage, and grocery wholesalers and distributors. Less common, though included, are businesses wholesaling and distributing chemicals, clothing, cleaning supplies, make-up, and other nondurable goods. Warehousing and transportation of these types of goods often involves refrigeration, fast turnaround, and tight inventory management to avoid losses of perishable goods.

Nondurable Goods Wholesale & Distribution Business Transaction Trends

The median sale price of wholesalers and distributors of nondurables has generally been increasing, though volatile from year to year. The was a surge of 194% in median sale price in 2023 as many larger than average food and beverage distribution businesses sold. Prices returned in 2024, though remained elevated compared to prior years.

Nondurables Wholesale & Distribution Business Valuation Multiples

Valuation, or pricing, multiples are financial tools that allow for comparisons between businesses that have different levels of revenue and earnings. They represent the sales price of a business relative to its financial performance, and given enough individual business sales data, they represent what the market is willing to pay for a business given its revenue and earnings.

Valuation Trends

Business values and associated multiples fluctuate over time, influenced by a variety of macroeconomic factors such as interest rates, inflation, consumer spending, and overall economic growth.

Valuation multiples of food and nondurables wholesale and distributor businesses have generally remained consistent, moving in response to macroeconomic factors along with the broader business for sale market. Revenue and earnings multiples rose in 2022 along with most asset markets as money was pumped into the economy, then fell as rising interest rates put pressure on financing costs, and therefore business sale prices.

Earnings Multiples

Earnings multiples represent the value of a business relative to its owner’s discretionary earnings or "cash flow". Arguably the most important valuation metric - as seller's discretionary earnings will often dictate how much a buyer is able to borrow to finance the business acquisition - business valuations tend to hinge on the earnings multiple.

Revenue Multiples

Revenue multiples represent the value of a business relative to its overall sales or revenue. In conjunction with an earnings analysis, revenue multiples are commonly used to value a business based on its overall sales.

How to Interpret These Multiples

Recent Listings vs. Sold Businesses

We calculate and provide valuation multiples from two sources: Current and recent listings of nondurable goods wholesalers and distribution businesses for sale, and our database of comparable businesses sold on BizBuySell. Multiples based on listing data are generally higher due to owners setting asking prices above what their businesses might typically sell for. This occurs either intentionally as a negotiation strategy, or incidentally due to business owners’ common tendency to overvalue their own businesses.

Multiples based on comparable businesses - "comps" in business broker parlance - are much more useful as they represent the prices at which businesses ultimately get sold. Business brokers and valuation professionals will always turn to local comps when pricing businesses for sale or evaluating businesses for acquisition. We provide both sets of data at the national level to offer general context. Local business sale comps by sales class suitable for pricing and negotiations are available in BizBuySell's Business Valuation Report.

Quartiles, Median, and Average

No two businesses are identical, and as such, valuation multiples exist in a range. We have carved out four common values within this range: Lower quartile represents the value under which the lowest 25% of valuation multiples fell. Upper quartile represents the value above which the highest 25% of multiples fell. Median is the middle of the range, and average is the mean of the set. Mean is almost always higher than the median, driven by a minority of high volume, high value businesses sold at multiples above the upper quartile.

Businesses with consistent financial performance, above average revenue and earnings, demonstrable growth potential, low owner involvement, unique competitive advantages, and a seller willing to finance will command a multiple at or above the upper quartile. Lower volume businesses with thin profit margins, full-time owner involvement, and many direct competitors will trade at or below the lower quartile. Most businesses will fall somewhere in the middle.

Based on this data, half of nondurable goods wholesale and distribution businesses are valued between 2.11 and 3.56 times their annual seller discretionary earnings, with 25% of larger businesses trading above this range, and 25% of smaller, less desirable ones trading below.

Financial Benchmarks

To determine how a business compares in terms of revenue and earnings relative to industry peers, it’s necessary to have some insight into industry standards. "Benchmarking" describes the practice of comparing a business’s financial performance to typical industry standards to determine where a business falls relative to other businesses in the same industry. These benchmarks can help guide owners and investors towards appropriate valuation multiples from the range above.

To that end, we have aggregated financial ranges useful for comparing an individual nondurable goods wholesaler and distributor to its peers in the market.

Nondurables Wholesale & Distribution Business Revenue and Earnings Trends

There was a substantial increase in reported revenue and earnings of nondurable goods wholesale and distribution businesses sold on BizBuySell in 2024 and less so in 2023. The driver of these increases was a surge of larger than average food and beverage wholesale and distribution businesses entering the market. So far, sale prices in 2025 appear to be returning to more typical levels.

Earnings Ranges

Discretionary earnings (used interchangeably with the terms "cash flow" and seller's discretionary earnings or SDE) is often the crux of business valuations, so it is important to benchmark it relative to other businesses traded on the market. Below you will find discretionary earnings ranges of nondurable goods wholesalers and distributors sold over the past five years, as well as recent for sale listings. While margins are not particularly high, distributors of food and nondurables tend to sell at greater volumes than most small businesses and so generate sizable profits.

Revenue Ranges

Sales volume plays a large role in business valuation, as it measures the size of the potential income opportunity for new ownership. It's not uncommon for buyers to select an earnings multiple range based on overall revenue. The table below includes revenue ranges of nondurables wholesale and distribution businesses sold over the past five years, as well as recent for sale listings.

How Revenue and Earnings Level Affects Business Values

Clearly higher levels of earnings lead to higher valuations, even given the same multiple. However, valuation multiples also tend to rise with business sales volume. Successful, growing businesses that consistently generate higher revenue (and maintain reasonable profit margins) tend to sell for earnings multiples on the higher end. So, a grocery wholesaler consistently generating sales of $4MM annually may sell for an earnings multiple around 3.5 or more, while a smaller food distributor with sales below $600k may sell for an earnings multiple just over 2.

This tendency for higher sales volumes to fetch higher valuation multiples is largely driven by the economics of business acquisition financing. Higher volume businesses give buyers more cushion to cover debt service obligations and still have enough left over to pay the new owner a reasonable income.

Sector Comparisons

For a more complete understanding of the market and valuation standards, consider comparisons across wholesale and distribution categories, as well as retail, when benchmarking these businesses. The chart and table below include key metrics from sales of wholesale and distribution businesses and non-restaurant retail businesses on BizBuySell between 2020 and 2024.

Wholesalers and distributors of food and other nondurables are generally valued in-line with peer businesses, though do appear to receive a very slight premium compared to durable goods distributors.

More Resources and Tools from BizBuySell

Thinking of buying or selling a business? BizBuySell has the tools, resources, and professionals you need to get down to business.