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A wave of mergers and acquisitions have changed the wholesale distribution market in a big way over the past few years.
A variety of factors have driven consolidation in this industry, from intense competition from industry leaders to the rising popularity of online shopping.
The internet has had a profound effect on the distribution industry. One of the most commonly-cited changes eCommerce has incurred is the rise of brands and manufacturers selling direct-to-consumer (D2C) to increase margins on each sale while cutting out the distributors that historically were responsible for getting products to businesses and consumers.
The ability to sell goods online also vastly expanded the field of competition in an industry where many distributors relied on a local and regional customer base
As the bar keeps rising, many small to mid-size companies struggle to match the outstanding customer experiences that top companies provide.
They need access to additional capital and expertise to contend with those top players and merging with or acquiring another company can help reach critical mass.
Our firm, specializes in unique guidance through the strategic steps distributors can take, such as pairing products with value-added services and capitalising on their size, to compete, scale in this new environment and generate a significant advantage to consolidate operational costs, manpower, management and general overhead.