You want to sell your bodyshop? Then it's good to know what the takeover market in the field of bodyshops looks like.
The number of mergers and acquisitions in this industry has been between 25 and 40 over the last decade.
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 sector, to which a body repair business belongs, 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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There are many startups in the industry every year, which also makes many businesses with only one person working visible.
In figures, the number of bodyshops looked as follows in 2024(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 bring about changes in the coming years, but also offer bodyshops many growth and acquisition opportunities:
With the advent of leased cars, the bodyshop market is structurally declining. Vehicle fleets are expanding, but the number of damage repairs is declining. As a business owner, it's nice to enjoy rising sales figures, but the contracts hardly yield anything else in terms of repairs.
Within a few years, the electric car will gain huge ground. This is great for the environment and nice for consumers, but less so for bodyshops. Cars will become smarter and technologies more ingenious, so fewer repairs will be carried out, according to Rabobank.
As cars become increasingly complex, bodyshops are starting to specialize. Each car brand has its own requirements and systems, making it no longer feasible for entrepreneurs in the industry to repair all brands, according to BOVAG.
