The volume of mergers and acquisitions activity in distribution has increased substantially over the past 12 months. Along with a continued increase in interest from private equity firms, strategic buyers have reentered the fray, both in the U.S. and overseas. The market will likely plateau or even soften in the next year or so, especially in sectors affected by the downturn in residential construction. Right now though, the market is hot -maybe even too hot, according to some industry experts. What’s more, an HD Supply spin-off could have an impact on valuations and provide opportunity to competitors of its diverse units.

HD Supply
Home Depot’s potential spin-off of its $12-billion wholesale division -announced in February by the $90-billion …