You want to sell your slaughterhouse? Then it is good to know what the acquisition market in the field of slaughterhouses looks like. The market is nearly saturated, but with the transforming needs of consumers (more vegetarian, vegan & organic), new vendors have emerged.
Acquisitions and mergers in this industry are not the order of the day and have also been fairly stable for years. These figures are based on both the poultry and livestock industries.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the agri and food sector, which includes an abattoir, an indicative range of EBITDA multiple of 5.4 to 6.1 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the Agri & Food sector? With this Brookz Sector Monitor we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the Agri & Food. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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There are many small-scale slaughterhouses operating, which means that relatively many businesses with only one person working are visible.
In figures, the number of slaughterhouses in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes in the coming years, but also offer slaughterhouses many growth and acquisition opportunities:
The demand for organic meat is still increasing, with the market share expected to rise to 20 percent in the coming years. Animals should have a good life and environment should be spared, according to ABN Amro.
The food supply chain is changing as consumers want a shorter and shorter line of food. Quality, delivery and local sourcing is gaining popularity, causing chains to expand and consolidate to join forces, according to Rabobank.
Health is more important, which also shifts the focus in terms of nutrition. More fruits and vegetables are being purchased, more organic and also less meat. The meat industry already noticed this in sales figures. Even though the market share of meat substitutes is only 4%, according to research by the WUR.
Consumers demand transparency and want to know where food comes from. Sustainable production, fair labor, as well as clean label production. The production and processing of meat should be as clean as possible, without additives and processing, according to Rabobank.
