Old Growth

THE OWNER’S JOURNAL / SALE PREPARATION

Thinking about selling your distributor? Start with 90 days.

You can prepare for a sale before deciding to sell. For a specialty distributor in the Southeast, the first useful step may be a quiet hour with a notebook: what would you want to change, what would you want to preserve, and what would somebody else need to understand? This 90-day exercise helps organize those questions. It is a preparation schedule you can adapt, not a promised transaction timeline.

Prepared by Old Growth · 5 minute read · Updated

Days 1 to 30: put your objectives on one page

Start with your own working life. Would you like fewer daily decisions, a gradual change in responsibilities, or an eventual departure? How flexible is the timing? Keep a separate list of priorities for the business, such as the people, location, customer service, or company identity. You do not need to settle every question now. An unresolved question belongs on the page too.

  • Write three things you want a potential buyer to understand about the business.
  • Name the decisions that still require your personal involvement.
  • List the advisers you would want involved before evaluating a proposal.
  • Choose one person responsible for keeping the preparation list current.

Days 31 to 60: create an index of what exists

Make a record index before assembling a large collection of files. For each category, note where it lives, the period it covers, who maintains it, and what is missing. Useful categories include financial reports, customer sales summaries, inventory reports, supplier agreements, premises documents, and operating responsibilities. This is an internal organization exercise. It is not a request to send those records to Old Growth.

Choose one small improvement you can finish

A fictional fastener distributor might discover that routine bin-replenishment questions all return to the owner. A manageable improvement would be to document the existing replenishment rules and practice one supervised handover. Another business might start by defining the date basis in its inventory-aging report. Choose work that makes everyday operations clearer whether or not you pursue a sale. Avoid turning the preparation period into an unmanageable overhaul.

Days 61 to 90: test the explanation

Ask yourself whether you can explain how an order becomes a delivery, how the business earns repeat work, and what happens when a key person is absent. Identify the parts that still need supporting records or another person’s input. Your accountant can help you decide what financial questions to resolve. A transaction attorney can help you think through information sharing and the agreements that may matter.

Decide on the next conversation

At the end of the exercise, choose among continuing preparation, seeking independent advice, or exploring a conversation with a prospective buyer. Bring a short description of the business and your objectives to an initial discussion. Keep detailed information for an appropriate, agreed stage. Old Growth welcomes introductions from specialty distribution and industrial supply owners in the Southeast; an introduction does not require a decision to sell.

ONE USEFUL NEXT STEP

Set one preparation task for each 30-day period, name its owner, and choose a review date. Three completed tasks are a useful start.

Choose your first preparation steps

Further reading: NC SBTDC: Guide to Selling a Small Business.

Old Growth is a prospective acquirer focused on the Southeast U.S. These general preparation prompts do not provide independent seller representation, a valuation, or personalized legal, tax, or financial advice.

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