You want to buy an earthworks, civil engineering company or sell your earthworks, civil engineering company? Then it is good to know what the takeover market looks like in the area of civil engineering companies. Where nationally investments are still waiting, internationally our offer is in high demand.
This sector is experiencing ups and downs as they rely heavily on government investment. Think of dredging, sewerage, concrete construction, infrastructure and cables. These developments have undoubtedly contributed to a higher than average number of consolidations in recent years.
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 construction and plant engineering sector, which includes a ground, road and hydraulic engineering company, an indicative range of EBITDA multiple of 3.7 to 4.7 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 Construction & Installation Technology sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and a look ahead that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in Construction & Installation Technology. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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PFAS and nitrogen measures have had a huge impact on civil engineering, as they have delayed tenders and forced land to stay where it was.
In numerical terms, the number of civil engineering companies 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 ground, road and hydraulic engineering companies many growth and acquisition opportunities:
Analysts at Rabobank tell us that climate change is pushing several challenges forward for the sector. Water boards are battling heavy rains and extreme droughts, requiring adjustments to pumping stations and canals.
Researchers, including from RIVM, talk about the effects of PFAS and its impact on the construction industry. If the soil contains relatively small amounts of PFAS per kilogram, there are strict rules regarding excavation, landfilling and disposal. As a result, soil construction is pretty much at a standstill with all the economic consequences that entails.
Cities are under pressure, creating plenty of opportunities for the industry. Obvious consequences of overcrowded places, such as noise pollution, smog and road diversions, are no longer accepted by residents. More sustainable and better living in the hustle and bustle of the city; that is the challenge for civil engineering companies, according to ABN Amro.
Managing and governing cities, that can (soon) be done through information technology and Internet of Things. Not only for administrative purposes, but also for consumer amenities such as transportation, hospitals and libraries.
