You want to sell your finishing business? Then it's good to know what the takeover market in the field of finishing companies looks like.
The construction industry is under pressure. Customers are going for convenience and are overwhelmingly choosing specialized professionals to take on their finishing jobs. For finishing companies, digitizing their businesses and attracting sufficient staff is important.
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 construction & installation technology sector, which includes a finishing company, an indicative EBITDA multiple range of 3.7 to 4.7 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 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 finishing 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 will also offer finishing companies many growth and acquisition opportunities:
The demand for skilled personnel at finishing companies is enormous. The one-person businesses in this branch notice this because their skills are frequently called upon. For almost one-third of all businesses said in the second quarter that a shortage of personnel was hampering their business operations, according to Rabobank.
Digitalization is also a trend in construction. Whereas in the past the craftsman came by and fixed a project price with a handshake, today the consumer demands transparency. Insight into the materials used, the approach and the rates. Convenience serves man, so keeping track of progress online and consulting the assortment will certainly be in line for B2B, but also for consumers. And that is not only beneficial for consumers. Because businesses that commit to digitalization stand a greater chance of revenue growth.
Obviously during the corona period, but also the years before, we paid more and more attention to our living space. And this is a trend that seems to be continuing even now. As is the demand for the use of conscious materials.
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