All good comments above. I’ll throw my two cents in as a distributor of a niche category of product. Many of the highlighted levers are going to be hard to assess from the outside looking in, specifically expanding sales & marketing and e-commerce. If you can get a customer list you can do some research on white space. Even if there are a lot of new customer targets, you need to have a good reason why those customers will switch to you. Relationships and a track record matter in B2B. Many won’t switch to save a couple of bucks. In other words, why does this company deserve to win? Is that applicable outside of current service area. May also want to ask which customers seller would want to target next and try to figure out why they haven’t done it already if seller says it will be easy to do. Finding new customers with a concerted outbound calling effort is going to be the best bang for your buck in growth. E-commerce could make sense, but it isn’t always easy to stand up a website with all of your SKUs. Having real time pricing and availability online can be a lot harder than it seems if there’s any kitting or complexity involved. If biz doesn’t have customers on standard pricing already this can be challenging as you have to post uniform pricing (or make it a request a quote type item, which defeats the purpose of e-commerce in some respects). We highlighted e-com as an opportunity for our business and a year and a half later we haven’t made much progress. Low hanging fruit is outbound calling efforts, which is where we focused. Having valuation hinge on a larger warehouse is questionable unless they were bursting at the seams at the old one. Have they seen a dramatic uptick in revenue since moving in? Maybe their product availability and SKU count went up when they moved? If not they added a lot of fixed costs which is not what you want when acquiring. If availability is paramount there could be good reason to get a larger space, but now the inventory you manage is going to be much larger. That’s more cash required to be reinvested in the biz. Two other growth levers / optimizations that may exist are inventory optimization and product line expansion. The biz we bought managed inventory by tedious paper processes and gut feel. We’ve grown sales significantly and were able to reduce inventory requirements. Happy to talk through how we were able to do this offline, but there are tools available to automate this. Another way to grow is add complementary product lines and make sure existing customers know you carry this. We put together a basic product line card and sent to all existing customers. Good response from customers and plan on surveying customers at the end of the year to see what else we can provide that they use to see if we should start carrying.

^redacted‌ might have some thoughts on this ‌