PE consolidation forces two-pronged distributor strategy

An independent distributor describes how private-equity consolidation has driven a strategy to prepare for both customer and competitor acquisitions, with manufacturers adjusting to fewer, larger distributors.

“Consolidation by private equity has forced us to have a two-pronged strategy in place, so we are prepared for both customer and competitor acquisitions. Manufacturers must adjust their pricing models, distribution agreements, and regional representation in order to navigate through fewer, but larger, distributors.”

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