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How PE-Backed Distributors Are Using AI to Pull Ahead, and How Mid-Market Companies Can Compete

By Ed Gandia, Founder and President, Cormorant Advisory Group.

The private equity firms that own your largest competitors just made a decision about operations.

According to S&P Global's 2026 PE outlook, 72% of GPs now rank operational improvements as their top value creation lever.

Yep, they've shifted away from financial engineering because that playbook stopped working. And now they're betting on AI-driven decision-making, process automation, and supply chain intelligence.

If you're a $45M distributor competing with PE-backed players three times your size, that matters. Because the companies with capital behind them are building systems that give them a huge advantage.

For example, they can immediately flag which accounts are quietly reducing orders before the rep catches it. Or surface margin leaks before the month closes. And brief operations on the three anomalies worth attention across all locations... without 90 minutes of manual data pulling.

Here's the good news. If you're a mid-market distributor, you can build that same core capability, scoped to your actual workflows — without the seven-figure budget.

AI levels the playing field when you know where and how to best leverage it.

Want to see what AI could fix in your business?

Let's talk for 25 minutes. Tell us what's going on, and we'll figure out together whether there's something here worth a deeper look.

General information about how AI is being used in businesses like yours, not advice for your particular situation. Reading it does not create an advisory relationship.