Building Products

Sanabe has long standing expertise working with building materials producers and distributors in all parts of North America.

While all expect the housing sector to recover eventually, in the intermediate term, the building products sector offers a unique set of challenges and opportunities:

• The sustained downturn in housing construction has severely strained financial performance and balance sheets
• Industry competitors have responded with sharp reductions in manufacturing and distribution capacity
• Despite the urgent near-term challenges, the close long-term relationship between population growth and demand for new housing should lead to an eventual recovery

Sanabe also appreciates the different factors that drive success in the building materials distribution category:

• The distribution sector manages the logistics of a complex supply chain with manufacturers, distributors and big box retailers offering overlapping products and services
• For distributors, relationships with suppliers are as important as customer loyalty
• Given the inherent complexity of a distribution platform, consolidation within the sector requires much preparation

These factors add substantial complexity to the task of valuation, of determining appropriate capital structures and of attracting outside capital to the industry.

We address these challenges in a number of ways:

• With unparalleled knowledge of the industry, including the range of product categories, manufacturing processes, distribution channels and fiber supply
• Focus on the different financial and operating metrics relevant for manufacturers and distributors
• By understanding the detailed financial results of our clients, with a particular focus on product mix, costs, operating margins and cash needs
• With current knowledge of those financial sponsors, industry participants and entrepreneurs willing to invest in the industry