Sell a Food Service Distribution business

Owner-operator food service distribution businesses trade at 3x–4.5x SDE for typical $500K–$3M SDE ranges. At $3M+ EBITDA scale the same operators sell at 5.5x–8x EBITDA. Multiples in this category are ebitda-based and data-sourced from MDM Market Leaders 2025 + IBBA Q4 2024 Distribution Segment. Where you land in the range is driven by growth trajectory, revenue mix, customer concentration, and management-team depth beyond the owner.

US Foods (NYSE: USFD), Sysco (NYSE: SYY), Performance Food Group (NYSE: PFGC), and Chef's Warehouse drive strategic consolidation. Active buyer archetypes in distribution include National distributor, PE-backed distribution platform, Family office. Which of these bids for your business depends on scale — sub-$1M SDE is typically individual or search-fund territory, $1-3M SDE opens up PE platforms and strategics, and $3M+ EBITDA gets full LMM buyer attention.

Regional food-service distributors with specialty-cuisine focus (Italian, Asian, Latin, seafood) and independent-restaurant customer concentration trade at premium — the specialty focus is what large national buyers pay up for. Beyond the industry-specific factor, the universal drivers in distribution are long-term supplier / manufacturer relationships (exclusive territories); recurring commercial customer base with autoreplenish orders; route density and warehousing footprint in target metros.

Food-service distribution is capital-intensive (refrigerated fleet, cross-docks) with thin margins; buyers apply substantial discounts for deferred fleet maintenance. Buyers in this category also standardly scrutinize supplier concentration or non-transferable manufacturer agreements and inventory obsolescence exposure. Addressing these in advance in a well-prepared CIM materially reduces retrade risk during diligence.

Typical transaction range for food service distribution is $10M–$250M in annual revenue. Below that, buyer pool narrows to individual and small-search-fund. Above that, PE platforms and strategics dominate. NAICS code 424410 — buyers screen by NAICS in most deal sources.

From the day you engage a broker to close, expect 6–12 months for a well-prepared business in distribution. The prep work — financial cleanup, addbacks documentation, key-employee retention agreements, real estate lease sorting — is where 3-6 months of the timeline hides. Starting that early is what separates a full-multiple exit from a discounted one.