You want to sell your landscaping business? Then it is good to know what the takeover market in the field of landscaping companies looks like. The landscaping industry has been on the rise for several years, but since 2020 there has been a growth spurt. Demand in the industry exceeds supply and the number of job openings is booming as well.
The landscaping industry is experiencing stormy growth. Consumers, as well as businesses, are pushing for sustainability. The fact that the government encourages greening also makes it a financially attractive task. Masses are opting for garden design with more greenery, where biodiversity takes precedence over paved terraces.
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 agri and food sector - to which a landscaping company belongs - an indicative range of EBITDA multiple of 5.4 to 6.1 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 Agri & Food 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 Agri & Food. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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About 10 to 20 years ago, there were beautiful garden designs with mostly lots of tiles. A tiled driveway, a tiled patio and even flower beds with tiled edges. Nowadays, consumers are more conscious about their living environment, so more creativity and proliferation are emerging in the landscaping industry. According to the Royal Association of Gardeners and Landscapers (VHG), demand in the sector has never been higher.
In numerical terms, the number of landscaping companies in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes over the next few years, but also offer landscaping companies growth and acquisition opportunities:
The landscaping industry employs a relatively high number of older people, while it is a physically demanding industry. According to the UWV, the number of people over 55 was already high a few years ago, but this is only increasing. The environmental factors workers perceive as tough, as they suffer a lot from dust, noise and hot summers. In addition, over 50% of the workforce has back pain, 30% shoulder pain and 21% knee pain, according to absenteeism specialist Sazas.
The business market is increasingly enlisting the help of interior landscapers, who specialize in hydroponics, artificial trees and plant walls. Trade magazine De Hovenier writes that in 2020 revenue was briefly disappointing compared to 2019 (-4%), probably due to closed offices, but is expected to recover soon.
The business market is increasingly enlisting the help of interior landscapers, who specialize in hydroponics, artificial trees and plant walls. Trade magazine the Gardener writes that revenue was disappointing during corona's heyday, probably due to the closed offices, but now that those days are a thing of the past, it is expected to pick up soon.
More and more we work (part-time) at home, but the time we have left over we don't put much into gardening. Herb gardens and sometimes a vegetable garden is doable, but weeding, planting and landscaping the garden? We'd rather hand that over completely. The more complete the service, the better.
