Stay Competitive and Independent with LBM Acquisitions

In 2024 alone, 143 LBM acquisition and closure events occurred, matching the pace of 2023. These aren’t just numbers on a chart. They represent real businesses, family-run or locally-owned, making pivotal decisions in the face of mounting pressures. 

So, what’s fueling this wave? 

• Succession planning
• Private equity surge
• Digital disruption 

As ECI highlights in a recent visual snapshot around M&A: “The LBM industry is consolidating with purpose.” But purpose also leaves room for strategy, and that’s where independent dealers have an opportunity to reassert themselves. Read more stats on key trends in M&A and the success formula to win as an independent. 

How tech levels the playing field among LBM acquisitions  

The dealers who are still standing didn’t get lucky. They got smart. They leaned into technology that grows with them, that actually earn their keep. That makes the difference when everyone else is looking for a way out. 

The tech stack that separates the winners  

ERP (Enterprise Resource Planning) 

Think of LBM-specific ERP as the backbone of your business. The one you didn’t know it needed. It combines inventory, pricing, orders, and customer records into one sharp, responsive system. No more guesswork or blind spots. Only real numbers you can use to plan smarter, tighten margins, and grow without the chaos. An ERP built for LBM businesses will help you get your operations and financials to thrive and give your employees more time back to strengthen customer relationships. 

Ecommerce 

Your customers want to order on their schedule or at their convenience after hours, get quotes fast, and know their deliveries are in motion. Wanna hear a real-life success story? ECI customer, Brent Burrows of CBS Bahamas, shared that most walk-in customers start their journey online. Most often during after-hours or early in the morning. If your system isn’t built for that, someone else’s is. And odds are, they’re the ones who just got bought and/or upgraded their tech stack and operations. 

Analytics 

When running a business, you need to see what’s working, what’s costing you, and where every dollar is going. Without deep insights to spot risks or identify growth opportunities, your blind spots will leave you lagging behind and outpaced by competition. 

As the Top LBM Industry M&A Trends infographic (2025) bluntly states: 

“Tech = Leverage.” 

And in this environment, leverage equals survival.

4 KPIs that drive business value for independents 

Whether you’re staying independent or preparing for a long-term exit on your own terms, these four KPIs should be front and center: 

1. Revenue – Use automated pricing, customer segmentation, and order history to increase upsell and repeat business.
2. Gross margin – Monitor costs with real-time data to maintain healthy markups and eliminate margin erosion.
3. Operating expenses (OPEX) – Reduce manual overhead through automated workflows and integrated systems.
4. EBITDA – Show prospective buyers (or your own bottom line) that you’re building a profitable, scalable business. 

Who’s buying LBM businesses and why should you care? 

The LBM market is shifting fast. Private equity firms are snapping up regional dealers, turning them into national machines with sharper tools and faster systems. They don’t wait. They modernize overnight and win on price, speed, and scale. 

At the same time, longtime owners are looking for clean exits. The next generation taking over family-run shops expects digital infrastructure, not gut instinct. If you want to acquire, you need to get your growth, value, and financials in check. Whether you plan to sell or not, your competition might. And when they return, they won’t be playing the same game. The question is, will you be ready to match them? 

Key insights from the competing with M&A workshop 

In a recent workshop hosted by LBM Journal, we examined the factors driving consolidation in the LBM industry and how independent dealers can stay competitive. Technology adoption has become a key difference between businesses that continue to grow and those that struggle to keep pace. The session features practical examples from dealers who have modernized their operations with tech to remain competitive, and win with service.

Our 2025 research shows EBITA multiples reaching 8.7x, influencing how companies are evaluated and prepared for change. The webinar provides everything you need to win. 

This session offers practical guidance if your goal is to strengthen operations, maintain stability, or plan for future growth.

Final word 

SRS Distribution and other major consolidators are shifting how business gets done in the LBM industry. 

Independent dealers still have meaningful advantages. You know your customers, you move quickly, and you understand your market better than anyone else. 

Modern tech gives you the operational support to match larger competitors without changing your identity. With the right ERP, ecommerce, and analytics tools, you can run leaner, make smarter decisions, and stay in control of your business. 

Ready to compete smarter? 

ECI Software Solutions offers purpose-built systems designed specifically for lumber and building supply businesses. Whether you’re starting small or expanding fast, our solutions scale with you. 

🔗 Explore ECI's solutions for building supply businesses 

Stay competitive. Stay independent. We’ll help you get there.