Business acquisitions in the wholesale and distribution industry
Wholesalers face challenges on multiple fronts: digitisation, new technologies, changing customer behaviour, competitors expanding product ranges, and direct selling that leaves them out of the supply chain.
The market is sensitive to the economic climate and there is pressure for widespread operational review in response to economic and political conditions. Stock shortages have triggered interest from buyers who see distribution assets as the key to control and capacity, and the rush to upgrade and digitise supply chains has also galvanised investors. Acquiring a warehouse or logistics company can provide synergy, enhance a competitive position, and help to make a business future-proof.
Trends and developments in the wholesale and distribution industry
Wholesalers can no longer avoid an omnichannel approach: customers expect flexibility and wide availability, and new ways of managing inventories and logistics are crucial factors in reliable last mile delivery.
A brick-and-mortar location alone is no longer enough, as customers demand 24/7 access to product ranges – although their feedback makes it easier for wholesalers to target their product range. Those that respond by investing in digitisation and innovation may make themselves an attractive target for private equity buyers.
In an industry that is sensitive to the economic climate, wholesalers are dependent on economic growth, which can include opportunities to tap into new export markets outside Western Europe. The increase in digitisation means that supply and demand are more closely matched, resulting in higher turnover and shorter delivery times – but staff shortages remain a challenge.
Full-service and economies of scale
New technology makes it possible for suppliers to bypass the wholesaler and do business directly with customers. But by taking control of the entire supply chain, wholesalers can respond to price constraints and online competition, and add services such as product design, drop shipment, customer services, and aftersales to create a full-service concept.
Buying or selling a company in the wholesale and distribution industry?
These trends and developments ensure that there are plenty of opportunities for a business acquisition or a well-timed sale.
To enhance your company’s growth opportunities, you may choose to partner with another party or to acquire a company as the next step in your growth strategy.
Marktlink: your specialist in acquisitions in the wholesale and distribution industry
Each year, more than a thousand entrepreneurs in this sector use the Marktlink Multiple to calculate their business value. We regularly guide the transaction process for companies in the wholesale sector and have unrivalled market knowledge and a substantial portfolio of potential buyers and sellers.
Are you considering an acquisition in the wholesale and distribution industry?
Are you looking for a partner or an investor, or do you want to join forces with another company? Marktlink can help you realise your ambitions. Always committed, independent and professional, we have a large national and international network, and detailed knowledge of local and global markets.
Our specialists will use their knowledge and experience proactively, to help you find the right successor or implement your growth strategy in the wholesale industry.
