You want to buy a wholesale car and accessories business or sell your wholesale car and accessories business? Then it is good to know about the takeover market in the field of wholesalers in cars and accessories. Scarcity in the commodity market is leading to a surge in the number of acquisitions and mergers in the automotive trade.
The number of mergers and acquisitions in the wholesale automotive industry fluctuates.
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).
An indicative range of EBITDA multiple of 5.0 to 6.0 is currently used for an automotive and accessories wholesale business, 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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Want to buy a business or sell a business in the wholesale 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 wholesale sector. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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There are very many self-employed people in the auto trade, and therefore the number of businesses with one person working is relatively high.
In figures, the number of wholesalers 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 wholesalers in automotive and accessories many growth and acquisition opportunities:
The supply chain has been completely disrupted by raw material shortages, lack of personnel, the pandemic and the war between Ukraine and Russia. And that is causing trade in auto parts, new cars and accessories to falter. According to DHL's head of freight transportation, this will improve by early 2023, but is still far from the level of early 2019. In the meantime, wholesalers of cars and accessories depend on this suboptimal supply chain and there are opportunities for higher circularity!
Fuel prices are sky high and that means consumers are looking more consciously at changing their transportation patterns. More car sharing and increased mileage with a more sustainable mode of transportation are logical outcomes of this. For wholesalers, this presents opportunities in making their offerings more sustainable.
