You want to sell your car cleaning business? Then it's good to know what the acquisition market in the field of car polishing companies looks like. There is a strong growth in the industry, but this is mainly due to the fact that the consumer is becoming easier and takes the environment into account. We no longer wash cars in the street, let alone give them a polish.
For several years now, the industry has been on the rise and this growth is expected to continue as well as innovate.
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 automotive, transportation and logistics sector, which includes a car cleaning company, an indicative EBITDA multiple range of 3.8 to 4.5 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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Want to buy a business or sell a business in the Automotive, Transport & Logistics 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 Automotive, Transport & Logistics. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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There are many startups and small-scale organizations in the market every year, so the number of businesses with one person working is relatively high.
In numerical terms, the number of auto polish companies looked as follows in 2024(CBS):
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A number of trends and developments will inevitably cause changes over the next few years, but also offer car cleaning companies many growth and acquisition opportunities:
According to Rabobank, it is essential for automotive entrepreneurs to expand their range of services and products. Cleaning cars is one thing, but selling polishes or offering innovative services, such as nano coating, is really another. This can strengthen their position considerably.
Capitalizing on online demand can greatly increase revenue. There are opportunities in the field of e-commerce, but also in terms of multimedia and Virtual Reality (VR) there is ground to be gained. Think of using VR to highlight different cleaning methods or showing the different products or services on video.
With the growth of private leasing and the decline in general car usage, the car cleaning industry is expected to shrink. It may be wise for polishing companies to enter into partnerships with local dealers so that you can be assured of sufficient polishing business.
