You want to buy a wholesale flower and plant business or sell your wholesale flower and plant business? Then it's good to know what the takeover market in the field of wholesale flowers and plants looks like. Inflation, higher transport costs, lower availability of products: wholesalers work very hard to offer their customers value for money, and that is exactly where wholesalers have to make a difference.
The number of mergers and acquisitions in the wholesale flower and plant business fluctuates, but over the past three years the number is quite high at 55 to 60.
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 wholesale flower and plant business, an indicative range of the 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 still quite a lot of self-employed people in the flower trade, about 50% of the number of businesses have only one employed person.
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 flowers and plants many growth and acquisition opportunities:
Inflation, higher transport costs, lower product availability, digitalization: wholesalers face quite a few challenges. And these challenges are mainly expressed in higher costs and thus higher prices. So the total picture of flowers and plants, service, experience and convenience really have to make a difference for the consumer. Because the better this approaches or even exceeds the expectations of the buyers, the better price increases will be accepted. Think in solutions for your customers, not in products.
Nitrogen Reduction, Buy Local, Climate Change, our society is becoming increasingly aware of the impact certain purchases have on the livability of our planet. An exotic plant in the garden that damages the local ecosystem? More and more people are choosing locally known and grown species. This changing consumer market demand has a direct relationship with wholesalers of flowers and plants. And as a result, wholesale sustainability is inevitable.
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