M&A activity in the distribution sector remained steady in Q2 2025, holding near 2024 levels but softening slightly from Q1. Buyers continue to be selective, with valuations below historical norms. Companies with strong technology integration, diversified supply chains, and resilient end-market exposure are commanding premium interest, while import-reliant distributors face ongoing headwinds.

Looking ahead, easing financing conditions and continued onshoring initiatives may support stronger deal flow in the back half of the year.

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