You want to sell your brokerage? Then it's good to know what the takeover market looks like in terms of brokerages. The housing market is absolutely unaffected by corona. House prices remain as high as ever and the number of sales is only slightly decreasing.
More and more mergers and acquisitions are taking place in the brokerage industry. Because the housing market is subject to many changes, having a larger team (and more favorable market share) allows for faster switching. Offering new services or introducing different sales methods is then definitely easier.
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 business services, to which a brokerage belongs, an indicative range of EBITDA multiple of 4.6 to 5.5 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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Do you want to buy a business or sell a business in the business services 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 business services sector. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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In figures, the number of brokerages 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 brokerages many growth and acquisition opportunities:
In the coming years, the housing market will come under scrutiny, as supply and demand have not matched for some time. Several proposals have been made to reform the tax system so that real estate is no longer an object for investors and also becomes a possible opportunity for first-time buyers, according to ABN Amro.
Brokers will increasingly seek cooperation with chain partners in the coming years so that a total concept can be offered. Independent agencies that have local knowledge or just specialize in certain niches. Think agricultural real estate, business brokers or offices that specialize in "The New Way of Working.
The demand for affordable housing is unstoppable, but according to Funda, a new challenge for brokerage firms is coming. Lockdowns and forced working from home is causing people to make more conscious decisions about what they want rather than location. As a result, many more searched outside major cities.
Offices will soon have to have at least energy label C, and home buyers also have more requirements. Insulation, solar panels and living spaces without gas have been on the rise for years. Online publication Vastgoedmarkt writes that this also creates opportunities for inspectors and other collaborative parties.
