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Sorren Benchmark Report

Riverbend Distributors

Scottsdale, AZ · NAICS 423830 Industrial Machinery and Equipment Wholesalers

Tax year 2026
Prepared by Angela Ibarra
Phoenix, AZ office
Section 1

Executive Summary

Riverbend Distributors generated $55,053,000 of revenue in 2026 with 113 employees, producing an EBITDA margin of -7.2% against a peer median of -0.4%. Compared with 31 similar businesses, performance is strongest in liquidity and warrants examination in growth. Total benchmark variance across all categories is $10.92M.

Section 2

Company Snapshot

Revenue
$55.05M
Employees
113
Entity type
C Corporation
Years in business
5
Gross margin
22.0%
EBITDA margin
-7.2%
Net margin
-10.6%
Effective tax rate
0.0%
Section 3

Peer Group Definition

31 businessesNAICS 423830 — Industrial Machinery and Equipment WholesalersAZRevenue $27.5M–$88.1M56–159 employeesTax year 2026

Comparison sample size 31; NAICS 423830; revenue range $27.50M$88.10M; geographic filter AZ. Data availability for this client: 68% coverage across tax return, financial statements, payroll and employee records.

Section 4

Financial Performance

Line item (% revenue)CompanyPeer medianTop 25%
Revenue100.0%100.0%100.0%
Cost of Goods Sold78.0%71.0%64.5%
Gross Profit22.0%29.0%35.5%
Payroll14.6%12.9%11.2%
Benefits1.9%1.8%1.6%
Occupancy2.0%2.5%2.3%
Marketing1.1%0.9%1.0%
Insurance1.0%1.0%0.8%
Professional Fees0.6%0.7%0.6%
Administrative & Other5.5%4.9%4.4%
EBITDA-7.2%-0.4%6.7%
Depreciation1.4%1.4%1.2%
Interest2.0%1.8%1.6%
Net Income-10.6%-3.5%2.9%
Section 5

Profitability and Operational Efficiency

Growth
1st
Profitability
28th
Labor Efficiency
30th
Operating Efficiency
63rd
Liquidity
77th
Leverage
27th
Tax Efficiency
66th
Asset Efficiency
25th
Section 6

Balance Sheet

Current Ratio
3.70
median 3.12
Quick Ratio
2.19
median 1.92
Debt / EBITDA
15387615.00
median 7067436.00
Debt / Equity
0.89
median 1.01
Days Sales Outstanding
63.74
median 52.59
Asset Turnover
1.40
median 1.55
Section 7

Tax Overview

Federal tax
$0
State tax
$0
Effective rate
0.0%
Section 179
$1,017,518
Owner compensation
$2,165,059
Owner distributions
$0
Retirement
$290,614
Capital expenditures
$2,042,082
Section 8

Industry Trends

YearRevenueGrowthGrossEBITDAPayroll %
2022$56.74M+6.0%18.3%-10.1%15.7%
2023$58.81M+3.7%18.2%-10.2%15.7%
2024$56.94M-3.2%18.9%-9.7%15.8%
2025$60.12M+5.6%21.5%-7.6%16.4%
2026$55.05M-8.4%22.0%-7.2%16.5%
Section 9

Opportunities for Discussion

  • Revenue per Employee. Revenue per employee of $487K compares with a peer median of $531K. Is productivity constrained by capacity, mix, or pricing?Benchmark variance $4.95M
  • Operating Expense Load. Operating expenses run 29.2% of revenue versus a peer median of 26.9%. Which expense categories account for the difference?Benchmark variance $1.28M
  • Payroll Efficiency. Total labor cost represents 16.5% of revenue against a peer median of 14.9%. Is the staffing model carrying capacity for growth, or absorbing margin?Benchmark variance $865K
  • Leverage Profile. Debt to EBITDA of 15387615.00x compares with a peer median of 7067436.00x. Does the capital structure match the asset base and cash cycle?
  • Gross Margin Variance. Gross margin of 22.0% compares with a peer median of 29.0%. Where are direct costs and pricing diverging from comparable businesses?Benchmark variance $3.82M
  • Owner Compensation Structure. Owner compensation represents 3.9% of revenue compared with a 3.5% median for comparable entities. Should compensation strategy be reviewed with the tax team?
  • Working Capital Position. Current ratio of 3.70 compares with an industry median of 3.12. How much liquidity headroom does the business need through its cycle?
Section 10

Advisor Notes

Section 11

Methodology

Sorren Benchmark aggregates anonymized financial, tax, payroll and operational data across 60,000 businesses. Peer statistics report count, mean, median, 10th, 25th, 75th and 90th percentiles and standard deviation. Comparisons use normalized ratios rather than raw dollars. Statistics are released only where a cohort contains at least 10 businesses, and individual peer companies are never displayed. Benchmark variance expresses the mathematical difference between this company and its peer median; it is not a projection of savings, nor tax or investment advice.