Electric Equipment wholesaler

searcher profile

December 10, 2024

by a searcher from Harvard University in Philadelphia, PA, USA

Hi, I have received a listing for a local Electric Equipment wholesaler. This wholesaler caters to a local market, customers are contractors, electricians, construction companies, homeowners, etc. SDE is 18-20% of revenue, with a 10% decline in revenue in###-###-#### The business seems to be in its maturity phase. The big challenge I see for this is e-commerce, large format retail (such as Home Depot), and consolidation of the smaller players in a segment expected to grow 2% p.a. for the next 5 years. is this a worthwhile play for an acquisition? thanks

0
9
48
Replies
9
commentor profile
Reply by a searcher
from The University of Chicago in Nashville, TN, USA
I would definitely explore this one further. Be wary of customer concentration but contractors and new construction folks aren't just looking for the product, the service and availability will be a big piece of it and a differentiator. I would also take a look at the stock price for their major suppliers, many are doing well as power applications continue to grow and their investor decks likely give you some more insight into each specific business segment.
commentor profile
Reply by a searcher
from University of Wisconsin in Hopkinton, MA, USA
I run an electrical contracting business and transact with businesses like these all the time. They absolutely have a place in the market. HD and Lowe’s will never replace them fully. Look for value-added opportunities like overnight delivery, sync with customer project BOMs, tie-in to customer CRM, and carrying energy efficiency and building management system components.
commentor profile
+7 more replies.
Join the discussion