Challenges Ahead for Many Distributors

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Author: Carroll D. Hurst, CPA

The distribution industry continues to be challenged by intense price competition and increases in commodity costs which adversely affect both gross profit margins and operating expenses. The volatility of petroleum products is particularly worrisome because of the adverse impact of increases in these products on distributors’ operating costs and on consumers’ disposable income to purchase the products distributed to retailers.

 Read more: Distribution and Logistics

About the Author

Carroll Hurst represents numerous closely-held businesses in the foodservice distribution, manufacturing, construction, retail, wholesale, and service industries, as well as private equity and venture capital funds. Many of these businesses are second and third generation family owned and operated businesses. Carroll’s services in the mergers and acquisitions area include valuation, interaction with investment banking firms and law firms during all stages of negotiations, structuring transactions, tax planning and modeling of after-tax cash flows from various transaction structures, due diligence assistance, and negotiation of various terms of the transaction.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


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