You want to sell your furniture manufacturing business? Then it's good to know what the takeover market in the furniture manufacturing field looks like. The number of acquisitions has fluctuated for several years, but by and large the industry is stable. This market includes not only furniture makers, but also makers of commercial furniture, kitchen and bathroom furniture and the mattress industry.
The furniture industry consists of various parts, such as manufacture of indoor furniture, as well as DIY furniture kits, small furniture and finishes of chairs, coat racks, etc. Interior construction, upholstery, manufacture of kitchen and bathroom furniture as well as the mattress industry also fall under this sector.
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 Ebita (Earnings Before Interest Taxes Depreciation and Amortization).
For the industrial and manufacturing sector, which includes a furniture maker, an indicative EBITDA multiple range 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).
Do the calculation
Want to buy a business or sell a business in the Industry & Manufacturing 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 Industry & Manufacturing sector. Because in any buying or selling process, thorough preparation gives peace of mind, overview and structure.
Download report
Work and private life are increasingly merging, which will increase the demand for multifunctional furniture. Representative furniture, upholstery, but especially space for leisure is an important issue in the coming years. The lockdowns reinvigorated online revenue and the furniture industry is not left behind either. The trend of sustainability has also accelerated.
In figures, the number of businesses in the furniture industry looked as follows in 2024(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!
To Brookz Academy
A number of trends and developments will inevitably cause changes over the next few years, but also offer furniture manufacturing companies many growth and acquisition opportunities:
We are increasingly focused on a circular economy. Where large suppliers, such as IKEA, are already focusing on recycling and using sustainable materials, this is buzzing throughout the industry. Simple dismantling and rebuilding, sustainable materials and refurbishing decades-old furniture: furniture making has it all.
We mentioned it above: customization and multifunctional concepts are in high demand. Our needs are becoming more and more specific, and this is reflected in our living spaces and businesses. An office is no longer just a place to work, and in the living room we no longer just sprawl out on the couch. Eye-catching furniture, modular furniture, but above all concepts with a dual function.
CSR does matter to us, but really paying more for a special CSR sofa, we don't do that much yet. However, we are willing to invest more in furniture that fits our lives. Special designs, innovative techniques and unsurpassed materials. According to Rabobank, this target group likes something a bit special.
