What should I ask about a packaging distributor’s corrugated box suppliers?

Begin by asking for a list of suppliers with a rough share of purchases from each. You are looking for dependence. If one converter supplies most of the boxes, find out why, and whether the relationship is a written agreement or a handshake. Ask whether pricing is fixed, tied to the paper market, or reset by the supplier at will.

Then ask about service. How often are orders late or short, and who handles the complaints? Talk to a supplier contact if the seller allows it. Ask whether the supplier knows the sale is coming and whether they would keep the account with a new owner, since credit terms and pricing may be personal to the seller.

Finally, ask about backup. Has the seller ever had to switch sources mid-order, and how did customers react? Check whether a second supplier has quoted recently. A distributor with tested alternatives is easier to run than one that has never needed them. Compare what the seller says with supplier invoices and purchase records.

Key takeaways

• List each supplier and its share of purchases to see how dependent the business is.
• Find out whether terms are written and whether they survive a change of owner.
• Ask for evidence of a tested backup source, not only a promise of one.
• Ask a supplier contact directly whether they would keep serving the account, on the same pricing, after a sale.