Merger activity accelerates
By John J Keough -- Industrial Distribution, 5/1/1999
Welcome to San Francisco and the Spring Convention of the American Supply and Machinery Manufacturers' Assn. and the Industrial Distribution Assn. As members of ASMMA and I.D.A. meet for this premier event, the industry is in the midst of some of the most tremendous changes that have ever taken place in the distribution channel. Mergers and acquisitions are increasing at a far more rapid pace than anyone would have ever predicted.Distributors (and some manufacturers) who were on a buying binge only a few years ago have now been bought themselves. Investment banks, venture capitalists and other Wall Street companies have rediscovered the importance of distribution and are actively seeking companies to buy. A newly formed holding company has bought two of the more well-known distributorships in the country. Will it ever end? The answer is, at least not in the foreseeable future. One distributor told us that he has had four proposals to buy his company in a three-week period. For now, he says, he's determined to remain independent, but wonders whether or not he can truly keep his company in the next few years.
Regardless of which path you choose -- to sell or remain independent -- it is crucial that you have as much information as possible to make an intelligent decision. That is why this convention is so important, and why it is imperative that you also attend the Chicago convention in November. These meetings allow you to attend seminars to help you run your company more profitably. At the same time, they give you the opportunity to network and meet key players in the industry.
Take advantage of the opportunity you have this week in San Francisco. It may help you decide on a future direction for your company.
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