You want to sell your wholesale business in electrical consumer goods? Then it's good to know about the takeover market in the field of wholesale electrical consumer goods. Limited availability and higher costs from product design and logistics to operations are driving up prices for wholesalers and their buyers.
The number of mergers and acquisitions of wholesale electrical consumer goods is related to economic growth and recession. After the pandemic, the economy is slowly recovering in 2021 and this shows directly in the number of mergers and acquisitions.
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).
For a wholesaler in electronic goods, an indicative range of EBITDA multiple of 5.0 to 6.0 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).
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Want to buy a business or sell a business in the wholesale 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 wholesale sector. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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There are many sole proprietors working in this sector, and therefore the number of businesses with one person working is relatively high.
In figures, the number of wholesalers 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 in the coming years, but also offer wholesalers in electrical consumer goods many growth and acquisition opportunities:
Purchasing contracts go beyond the lowest price. If, as a wholesaler, you can offer more added value through knowledge exchange, the development of new concepts or other delivery options, then you can stand out from competitors. "Broadening your business model leads to more revenue and customer value," said Rabobank.
In addition to sustainability, smart appliances are the future. These electrical consumer goods make your life easier, by being fully geared to your life and acting autonomously. The market for these products is only expected to grow.
