You want to sell your graphic business? Then it's good to know what the acquisition market in the field of graphics businesses looks like. The graphics business is under quite a lot of pressure, because of the many changes. More online graphics and less printing. When physical materials are in demand, though, durability is a deciding factor.
The graphics industry has been suffering from a shrinking industry for years. Large businesses are collapsing and an already years-long constant consolidation struggle is having a huge impact.
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 media, advertising and communications, which includes a graphics business, an indicative range of EBITDA multiple of 3.3 to 4.0 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 Media, Advertising & Communications 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 Media, Advertising & Communications. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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The industry is under pressure. There is increasing unemployment, with the number of businesses quitting or being acquired also increasing. The competitive pricing of Internet-only businesses is insurmountable. Businesses in the printing industry are increasingly offering a total concept, which seems to be a future-proof choice.
In figures, the number of graphics businesses in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes in the coming years, but also offer graphic businesses many growth and acquisition opportunities:
According to PrintMatters (part of ManagementMedia), the number of businesses in the graphics sector will decrease in recent years. Internet printing and online businesses are booming, offering competition that even established graphic media cannot handle. There are currently more closings than start-ups, according to ING.
The demand for packaging has been increasing for years. Underlying this, of course, is the increase in the number of sales. Apart from the quantity of packaging, there is also a need to offer transparency towards the consumer, especially in terms of sustainability, according to the Royal Association of Graphic Industries (KVGO).
Despite shrinkage and the closure and acquisition of many businesses in the graphic arts sector, one in three businesses has still hired new employees, according to KVGO. This is mainly to replace older employees, who have reached retirement age.
Who says e-commerce, says sustainable packaging. Less plastic and sealing packaging with attention to the 5 R's; this is what the printing industry is all about. This is a society-wide discussion that calls for a lot of innovation and new recycling techniques, ING said.
