International Joint Venture and Merger & Acquisitions

Appointing Distributors

Distributorship Agreement | Distributorship Opportunities

Sales is the lifeblood of all businesses. It is a constant need not only for the success of the business but also for its survival and as an entrepreneur you cannot leave any stone unturned to reach new customers and expand to new markets. But often financial constraints restrain the business from hiring marketing team, opening a new office or even carry out the market research. This is where appointing a distributor could make huge difference especially for small and medium businesses as they can increase their sales without taking on financial challenges.

Benefits of Appointing Distributors:

  1. You can expand to new markets that otherwise you could not target because of high investment cost.
  2. If your business is doing great, this is still an opportunity to reach a wider market without having to set up local presence.
  3. Besides adequate funds, it is important to have a knowledge of local market including customer preferences, their mindset – appointing a distributor brings that much needed expertise.
  4. Lastly, with distributorship model, you are able to share a significant level of risk with your distributor.

Appointing distributors could have some challenges like controlling the selling process, no direct connection with customers and distributors dealing in multiple segments but these challenges could be avoided by carefully selecting the right partner and building a mutually beneficial relationship. With a strong global presence such as ours, we have worked with various small as well as large brands who are looking to enter new markets and want to build a distribution channel. Not only our international network but our clients also benefit from our in-depth sectoral knowledge and our end-to-end approach that begins with evaluating the products or services, identifying best markets for these products and developing a business plan to finding the right likeminded distributors and strategically appointing a master distributor or multiple distributors as best suited.

On other hand, we also work with individuals or traders who are looking to associate with good brands, represent them and take their products to wider markets. We help them find right manufacturers so that they can add new products to their portfolio and act as distributors for the Company in domestic or overseas markets.

Distributorship Agreement:

Distributorship or Distributor agreement lays out all the roles and responsibilities of the distributor as well as of supplier. It is the foundation on which the relationship of supplier and distributor is based and therefore, its important to ensure that the agreement is drafted in such a way that both parties could benefit from the arrangement otherwise a loose agreement could raise conflicts later on and spoil the relationship.

Our experts not only help you find right distributor, but we also help you with structuring and negotiating this crucial agreement and protect your interest & future making it a win-win situation.

Process for Appointing Distributors:

The process is completed in 6 steps as below:

  • Initial assessment of business model and strategic growth objective of the client’s business.
  • Evaluating key industry trends in the target market where distributors are to be set up.
  • Prepare Information Memorandum & other promotional documents.
  • Identify suitable distributors and reach out to them on behalf of the Client.
  • Set up meetings with interested distributors & negotiate the terms of deal.
  • Finalize the Distributorship Agreement and close the transaction.

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Looking for Distributors? Contact Our Advisors

Thank you for your interest. Write to us with your inquiries, questions or request a meeting with an expert to discuss your potential distributorship business model. Our team would review the form and revert back shortly.

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