Today’s M&A climate is about controlling what you can. It is imperative for distributors to get their own businesses in order before making any acquisition decisions, no matter which side of the deal they’re on, according to Dave Gabriel, COO, Sonepar, in Top Trends for 2017.
The sluggish U.S. economy in 2016 shifted the M&A landscape to one of fewer and more modestly sized transactions in the slow-growth environment. Though the climate is improving, uncertainty still looms and pursuing M&A requires a keen focus on identifying strengths and weaknesses.
“If you have an alignment … then maybe (M&A) makes sense. Know yourself first,” says Gabriel, who was president of Sonepar North America at the time of his comments. “Chasing volume for the sake of volume, or chasing geography for the sake of geography, I wouldn’t advise that for anyone.”
Knowing when to buy or sell and for how much is tricky, but being aware of your own strengths and weaknesses can help alleviate stress and lead to a successful deal.
Learn more about M&A and other topics that are front of mind for distributors this year in Top Trends for 2017.