DW Distribution – Case Study

Timing the Sale With Strategic Insights

Executive Summary

DW Distribution

DW Distribution is a leading distributor in the building materials industry, offering a wide range of products including engineered wood products, millwork, door units, and more. The business was founded in 1955 by Bob Byford and Vernon Potter under the name Dallas Wholesale Builders Supply Inc. DW Distribution remained under the ownership of the Potter family until late 2021, when third-generation owner Nathan Potter sold the business with the help of accurate insights from ITR Economics.

“Our strategy was to outperform the market by incorporating ITR’s forecast into our strategic planning process – with their help we achieved that!” – Nathan Potter

  • DW Distribution first learned of ITR Economics nearly 20 years ago, when the Potter family heard ITR Economics Consulting Principal Alan Beaulieu speak at the National Association of Wholesaler-Distributors Conference, warning that the 2008 Great Recession was on the horizon.
  • After learning about ITR Economics’ impressive track record with economic forecasting and unique methodology, DW Distribution became a client.
  • After ITR Economics helped the business prepare for the Great Recession and lessen the impact of the economic downturn, DW Distribution continued to rely on ITR’s insights provided via the popular Executive Vantage Pointℱ (EVP) programs for years to come.

“We believe in ITR so much that we bought the ‘Make Your Move’ books by the hundreds, would give them to our customers, and educate them on rates-of-change...

People still come up to us today and thank us for that and ask for the ITR updates.” – Nathan Potter

Implementing the Service

After buying into ITR Economics’ unique methodology, DW Distribution successfully integrated the firm’s economic insights into their business strategy. After a swift implementation process, DW Distribution’s leadership team was actively involved in understanding and adapting to the accurate economic forecasts. This included training and educating the team on rate-of-change analysis, leading indicators that relate to the business, and more.

How Product Helped

It did not take long for the client to realize the benefits of ITR Economics’ EVP service. DW Distribution used the program’s insights to make informed business decisions, such as expanding into new customer bases, product lines, and geographical areas. Furthermore, the firm used the economic forecasts to ensure investments were made at the right time.

In fact, thanks to ITR Economics’ business cycle theory, DW Distribution was able to make large, bold investments at the right time with confidence, which helped them outperform the market and gain a competitive advantage.

“We'd never heard an economist talk about their accuracy from the prior year, and I think that speaks volumes...

We continued to listen and monitor those other options, but over time it became clear to us that ITR was the superior method. And, of course, the results kind of speak for themselves.” – Nathan Potter

Selling the Business

The continuous use of ITR Economics’ insights contributed to the company’s sustained success, helping them navigate economic challenges and achieve significant growth over the years.

After internal discussions, Potter made the decision to sell the business to Specialty Building Products in November 2021, once again using ITR Economics’ methodology to sell at an optimal point in the business cycle to make the most profit.

“ITR Economics would be one of the three key factors driving the enterprise value for a company. ITR was certainly one of the top three for us.” – Nathan Potter