You want to sell your auto garage? Then it's good to know what the takeover market in the field of auto garages looks like. There is a shortage of versatile mechanics who, in addition to tinkering, are also good with computers and diagnostic devices. As a result, consolidation through mergers and acquisitions will take place in the coming years.
The number of car garage mergers and acquisitions has fluctuated between 105 and 180 over the past decade, according to the Central Bureau of Statistics.
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 auto garages belong, an indicative range of EBITDA multiple of 3.8 to 4.5 is currently in place, 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 auto garages 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 over the next few years, but also offer the auto garage industry many growth and acquisition opportunities:
Fully electric cars are on their way to a breakthrough. The main barriers to success - charging infrastructure, range and price - will be broken down in the coming years. The electric car is thus on a growth path to a substantial share of car sales, according to the ING Economics Bureau in the report Breakthrough of electric vehicle threatens European car industry. For auto garages, however, the transition to electric driving also represents an opportunity.
According to ING, working from home due to the corona crisis is also affecting vehicle maintenance and repair. Workshop revenue is holding up as the vehicle fleet increases again in the early 2020s. This still exceeds the adverse effect of the electric fleet going to the garage less still, although maintenance rates are under pressure. However, lower mileage due to working from home may also start to have an effect on maintenance needs starting this year.
Auto garages can choose to use approved or earmarked products. These are the least harmful to people and the environment. The Sustainable Repair Foundation has created a list showing the products approved by the foundation for each supplier/manufacturer.
Being in touch with customers digitally is becoming more important for good customer loyalty and for increasing transparency. For example, through email and Whatsapp, businesses can alert the customer to a MOT appointment or share photos of work performed or needed.
ABN AMRO indicates in their Insights report that the number of vacancies has been increasing for some time. There is a particular need for employees who have knowledge of information technology, as more and more cars are controlled by electronics.
