Why Distribution Wins Over Product in Business Sales

In this episode of The Buyer & Seller Podcast, Lucas and Luna explain why distribution often beats product when it comes to selling a business. Using the example of a regional HVAC parts distributor that sold for 11 times EBITDA — despite stiff competition from national players — they break down the structural advantages of having a deep customer network. They discuss how recurring revenue from loyal contractors, the moat of local relationships, and the difficulty of replicating a distribution network all contribute to higher valuations. The conversation also touches on how buyers think about risk: a product can be copied, but a distribution network takes years to build. If you’re considering selling a business — or buying one — this episode offers a clear framework for what really drives value in the lower middle market. #BusinessSale #DistributionNetwork #EBITDAMultiple #HVACParts #LowerMiddleMarket #BusinessBroker #MergersAndAcquisitions #SellingABusiness #BuyingABusiness #CustomerMoat #RecurringRevenue #Loyalty #ValuationDriver #FexingoBusiness #BusinessPodcast #TheBuyerAndSellerPodcast #ExitPlanning #PrivateSale Keep every episode free: buymeacoffee.com/fexingo