DISTRIBUTION M&A MARKET DYNAMICS
In Q3 2024, the global Distribution sector recorded 143 deals, while the U.S. sector closed 66, representing a slight decline compared to the same quarter in 2023. Despite this slowdown, investor interest in distribution companies remains robust, supported by falling interest rates that alleviate the financial burden of leverage. Industry leaders continue to pursue growth through acquisitions, focusing on value-added services, digital transformation, and product line expansion to stay competitive and increase wallet share.
Strategic acquisitions remain the driving force in the Distribution sector, accounting for over 90% of deal volume. This trend is fueled by larger distributors seeking to expand their capabilities and product offerings. According to McKinsey & Company, pandemic-era supply chain disruptions have prompted nearly half of U.S. businesses to switch vendors or brands in pursuit of greater reliability. In response, distribution companies are diversifying their product portfolios by leveraging strategic acquisitions to ensure they can meet evolving customer needs.
