You want to sell your distribution center? Then it's good to know what the takeover market in the distribution center field looks like. More XXL distribution centers are being built due to the growing economy, but this also brings challenges.
The number of distribution center consolidations has been relatively stable over the past 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 transport and logistics sector, to which a distribution center belongs, 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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Distribution centers are often large block boxes, but due to automation and effective use of staff, the number of employees per center has decreased in recent years.
In figures, the number of distribution centers 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 distribution centers many growth and acquisition opportunities:
Distribution centers are obviously already quite upscale, but in recent years a trend has emerged. More and more gigantic storage centers are being built, covering at least 40,000m2. Although it has a favorable impact on the economy, the so-called block-box landscape does not appeal to everyone.
As consumers become more demanding, automated warehouses are on the rise. Thanks to the combination of technology and personnel, the workflow is highly efficient, moving products from A to B in an instant. Inventory, management and logistics systems ensure that no package is left waiting.
Despite the aftermath of the pandemic, the logistics & transportation sector is doing quite well. Store supply experienced a significant dip, but this was offset by extreme growth in online purchases. According to Rabobank, the outlook for the coming years is also positive.
Due to an aging population, as well as increasing health problems among working seniors, there will be a (too) large outflow visible. Even with the influx of new staff and attracting international help, it remains to be seen whether the sector can solve these shortages. Rabobank argues that creativity and innovativeness are required.
