How to Pursue Profitable M&A - Modern Distribution Management

How to Pursue Profitable M&A

Growing through M&A begins by identifying your M&A goals.
Eric-Smith-84x84

As the economy improves and valuations soar, distribution has maintained its status as one of the hottest targets for private equity investors, making now the best time in the last 10 years for companies to sell.

But selling doesn’t have to be a zero-sum game for company owners. Begin by defining what it is you want to achieve through selling or buying.

If you're not ready to retire, many acquirers are eager to provide you with a continued role. After all, you helped make your company an attractive option to them.

There are many other options, as well, including a partial transaction or a partnership with a private equity firm, the topic of the next MDM Webcast, Finding an Acquisition Ally.

Today's market has made M&A a viable option not only for companies who might be eyeing an exit strategy but also for those pursuing their own growth strategy by becoming a platform company for a financial buyer and expanding through acquisition.

"Who wants to sell when earnings aren’t at good levels?" T.J. Monico of KeyBanc Capital Markets asked in 2017 State of M&A in Distribution: ‘Never Been a Better Time to Sell’. "We saw more commercial products, building products, construction products last year as a percentage of the overall M&A market. This year we’re starting to see more true industrial distribution companies come to market or plan to come to market as earnings recover."

In this 60-minute webcast on Wed., Oct. 18, at 1 p.m. EDT, Monico and Don Bramley of Audax Group will share insights for finding the right partner and pursuing profitable M&A deals.

Monico and Bramley will also outline the business advantages of taking this approach in today’s challenging marketplace, where becoming a consolidator can help your company grow revenue and expand its geographic reach.

Learn more about how private equity firms can help distributors consolidate and how to find the right partner by registering for the upcoming MDM Webcast, Finding an Acquisition Ally.

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