You want to sell your electrical engineering business? Then it's good to know what the takeover market in the field of electrical engineering businesses looks like. The Netherlands is working hard to make the energy transition a reality as soon as possible.
The number of businesses in electrical engineering increased dramatically, but the number of mergers and acquisitions remained relatively stable.
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 construction and installation technology, the industry to which electrical engineering businesses belong, an indicative EBITDA-multiple range of 3.7 to 4.7 currently applies, 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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There are many self-employed people in this sector, and therefore the number of businesses with one person working is relatively high.
In figures, the number of construction companies 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 electrical engineering businesses many growth and acquisition opportunities:
The energy transition is in full swing, but it still requires a lot from the electrical engineering industry. From the now overpriced gas power we are moving to solar panels, heat pumps and induction hobs. And that requires knowledge of innovation, technology and people. Plenty of work and challenges in the near future for the electrical engineering business.
In addition to sustainability, smart appliances are the future. Devices that make your life easier, by fulfilling your needs with a small clue or fully automated. Here you can think of automatically closing the curtains or switching from functional to mood lighting, but they also include automatically turning on the washing machine or oven from work. Home automation is not just a nice gadget for the younger generations, as it also allows the elderly to live at home longer. The market for these products is only expected to grow.
Staff shortages play a role in all sectors. Currently, electrical engineers are in high demand and this will not diminish in the near future. The energy transition, domotics, but also an aging population are causing this high need. Because aging (and future pandemics) will further increase the demand for medical equipment in the coming years.
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