M&A activity in the North American specialty distribution industry slowed in the Trailing Twelve Months (TTM) Aug-25 period, representing a year-on-year decrease of 21% in volume compared to TTM Aug-24.
- Elevated interest rates, macroeconomic uncertainty and differing value expectations between buyers and sellers limited M&A activity.
- Geopolitical concerns, including tariffs, have prompted many business owners to exercise patience before committing to an M&A process, while buyers have adopted a more risk-averse approach.
- The recent 25 basis point interest rate cut, along with the expectation of additional rate reductions in 2025 and continued pent-up dry powder, has led to cautious optimism for increased deal activity for the remainder of 2025 and into 2026.
The consumer discretionary distribution sector has been the most resilient, showing positive growth in TTM Aug-25 compared to TTM Aug-24.
- In contrast, M&A activity in the consumer staples distribution sector declined approximately 21% in TTM Aug-25 vs. TTM Aug-24.
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