SECTOR · SELLING
Builders Merchant
A builders merchant operates at the centre of local construction activity. Selling requires a clear picture of customer base, margins, and property position.
A builders merchant operates at the centre of local construction activity. Selling requires a clear picture of customer base, margins, and property position.
A builders merchant sells building materials — timber, cement, aggregates, plumbing, insulation, fixings — to trade customers and, in some cases, retail buyers. Revenue is generated through counter sales, trade accounts, and delivery services.
The business model depends on stock management, supplier terms, pricing discipline, and local trade relationships. Margins are tight and vary significantly by product category. Timber and heavy-side often carry different margin profiles to plumbing or specialist lines.
Physical premises are a defining feature. Location, yard access, and storage capacity directly affect trade volumes and operational efficiency. Whether the property is freehold or leasehold has a material bearing on both value and deal structure.
Preparation checklist
TWELVE MONTHS OUT
- Separate repeat revenue from project revenue in the accounts, monthly.
- Put ongoing customers on written terms.
- Move accreditations and licences into the company's name.
- Reduce any customer above 20% of revenue.
- Appoint or develop a second-in-command.
- Reconcile three years of accounts to bank.
- Document contracts, employment terms, insurances and supplier agreements in one place.
RECENT ACTIVITY
Who is buying.
Acquisitions announced by the buyers themselves, logged here so owners can see who is active in their sector and at what scale.
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