Industry Insights

The Industrial Supply & Distribution sector is experiencing a quiet resurgence. Lower-middle-market valuations are climbing, strategic buyers are active again, and high-quality distributors are seeing strong interest from both strategics and financial sponsors. Our latest report breaks down the trends shaping the market and what they mean for family-owned companies.

This edition of Western’s M&A reports focuses on the metal fabrication & distribution space, including steel products manufacturers and metal service centers. Recent valuation trends have fluctuated, reflecting increasing sensitivity to inflationary pressures and tighter credit conditions.

This report features the Building Products Distribution industry, including lumber and other construction materials wholesalers. Since the COVID-19 pandemic, strategic buyers have been more active in this market, seeking to broaden their geographic reach and/or product offerings. The multiples in this report are driven mainly by headline transactions involving Home Depot, SRS Distribution, and Beacon Roofing Supply that potentially limit their applicability to deals in the lower middle market.