Technology – A Distributor’s Key to Higher Valuation

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“Company A acquires Company B”: too common a title for any of us to have missed. The pandemic has added fuel to the fire and more and more distributors are eager to acquire players who want to pass the baton in this volatile environment. The pace is only expected to pick up in the coming months.

As a distributor, you are probably in one of three paths: (i) ready to sell for excellent valuation, (ii) seeking growth through acquisition, or (iii) planning to stay the course and grow. quickly and organically. Either way, your sales, operations, and ability to scale effectively will drive success. In the age of online ordering, a few facts are common across the board. The average size of orders is decreasing, the frequency of orders is increasing and it is almost impossible to find good employees. Effective scaling equals a strong technology platform that handles volume without a corresponding increase in cost.

Ready to sell

Are you looking to sell and want to get the best price for the business in which you have invested body and soul for years? To get the best price, you must show that:

1. Your business is scalable: A cohesive structure that evolves quickly is a key element of a high valuation. Scattered information, multiple systems that don’t talk to each other, or a heavy reliance on employees working in silos are telltale signs of inefficiencies that highlight a poorly managed business. . In a technology-intensive environment, a strong, well-structured system is often the backbone of a well-run organization.

2. Business intelligence in the structure and not the individuals: A consistent platform that absorbs new people quickly, adapts to someone’s absence, and shares information effectively provides a scalable structure.

3. Turnover is important, but so is profitability and growth: Automation provides proposal-to-pay assistance tells the buyer that acquiring your business will help them scale without a corresponding increase in cost.

4. Not limited by time and distance: 24/7 access from anywhere is no longer a slogan. Secure access, PCI compliance, and an always-available infrastructure for all employees to be the most productive from anywhere are keys to scaling a business. It is a basic requirement.

On the hunt

Whether you’re buying a business or buying revenue, you need a platform that provides a consistent structure for managing and scaling through an acquisition. Transparent and automated commission calculations, integrated accounting and financial reporting, inventory management, and open API integrations are just some of the important components that simplify and facilitate painless acquisition.

To augment

For those ready to scale their business, chances are you’ve outgrown the system you grew up on. Scaling is about pushing back the barriers and creating efficiencies that put everyone in your organization in a better position to succeed. One way your system can achieve this is by creating automations that eliminate the manual entry and manual processing of individual orders, payables, receivables, and commissions. Your system should allow you to handle exceptions only and keep your salespeople focused on selling.

Conclusion

Putting your business in a more profitable and efficient position for long term growth should be an exciting undertaking. As business leaders and owners, you have to see through the instinct to resist change and see beyond the visible. Look for a technology partner who invests in your growth and is committed to improving your business on their platform.

Aturian is one of the few platforms designed exclusively for promotion distributors. It’s a 100% cloud-based platform with a full accounting suite, order and inventory management system designed to support any midsize distributor. Aturian uses integrations as a core principle to easily align with e-commerce platforms and offers an open API for integration with the systems of your choice.

If you would like to know more, contact Aturian at [email protected] Contact Aturian for a demonstration.

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