First off - congratulations on getting attention.
As there is more than one distributor interested that puts you in a better position than if just one was looking.
Negotiate - ask the distributors what they want, they may be happier to do just UK or Europe anyway.
Read the small print - have a good look at what the offer actually is and decide the best overall offer.
Check the company - what have they done previously and what are they doing now. Does your music fit in with their business?
Good luck too
