You want to sell your construction market? Then it's good to know what the takeover market in the field of construction markets looks like. There was a huge surge, as people were looking to increase home improvement at the time of the pandemic. Meanwhile, the growth has turned into contraction and sales at hardware stores will mainly be online.
The number of acquisitions has been somewhat stable for years and this is not expected to escalate in the short term. This is mainly due to shifting consumer spending. Whereas initially the focus was on optimizing the home and workplace, this will now gradually move back toward hospitality & leisure.
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 retail, the sector to which a construction market belongs, an indicative range of EBITDA multiple of 1.9 to 3.0 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).
Do the calculation
Want to buy a business or sell a business in the retail 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 retail sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
Download report
In contrast to many other industries, construction markets have very few start-ups and single owners. Most businesses belong to chains and consist mainly of larger teams with more than five employees.
In figures, the number of construction markets 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!
To Brookz Academy
A number of trends and developments will inevitably cause changes over the next few years, but also offer the construction industry many growth and acquisition opportunities:
There is still a lot of room for innovation for DIY stores, as not all products are available online by a long shot. Large chains sell small items online, but there are also hardware stores that have not yet discovered the online segment. This is where there are great opportunities for stores, according to ING.
A multifunctional living environment and a comfortable workplace. It has become more important for consumers to fix things up and make the living space, both inside and outside, completely to their liking. Painting, building, repairing and styling: consumers know how to find the DIY market, writes ABN Amro.
The construction market is mostly used to get tools, paint and materials. The assortment is becoming more sustainable, and consumers are finding conscious living to be decisive. Houten or recycled materials, sustainable paint and vintage furniture refurbishing.
Renting tools from the construction market is increasingly popular. It avoids the purchase price of materials, saves storage space and ensures that a piece of equipment is not sitting in the shed after a single use.
