You want to sell your car company? Then it's good to know what the takeover market in the field of car companies looks like. As cars are produced with better quality and car use becomes more important than car ownership, overcapacity is created. Consolidation will increase the number of business acquisitions in the coming years.
As cars are increasingly manufactured with better quality, consumers make purchases in a different (read: digital) way, and fewer miles are driven on the asphalt, there is overcapacity of car companies in the market. This leads to consolidations in the dealer network. A growing shortage of qualified personnel may also lead to more "capacity takeovers. Buyers are not primarily looking to increase revenue or improve market position, but are primarily looking for additional employees.
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 automotive - the sector to which car companies belong - an indicative range of EBITDA multiple 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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In figures, the number of car companies in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes in the coming years, but also offer car companies many growth and acquisition opportunities:
Being in touch with customers digitally is becoming more important for good customer loyalty and for increasing transparency. Through email and WhatsApp, for example, businesses can alert the customer to a MOT appointment or share photos of work performed or needed.
An important question for the auto industry is to what extent working from home holds up after corona. About two-thirds of new cars in the Netherlands are purchased on a business basis. If employees continue to drive fewer miles, lease arrangements and the lease fleet will come under pressure. Cars are also now more frequently sold online and direct, threatening dealers.
The corona crisis does not mean that driving has lost popularity. Research by KIM shows that travelers are currently choosing the car more often to avoid public transport. The absence of traffic jams also makes the car more attractive. This has boosted the already relatively strong demand for used cars in the Netherlands.
The cost of car ownership has risen significantly in recent years due to higher taxes, fuel prices and parking fees. As a result, consumers will want to spend less on "traditional car use. There is a slow shift from car ownership to car use, causing car sharing and gaining popularity.
Because competition is increasing, it is important to offer the complete picture to your target market. Don't just sell cars, but also perform MOTs, change tires and possibly offer other vehicles, such as scooters and motorcycles.
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