You want to sell your carpentry business? Then it's good to know what the takeover market in the field of carpentry businesses looks like. Besides the well-known influences of nitrogen measures in construction, another notable change is visible: the price increase of raw materials, including wood.
Craftsmanship is hot: the demand for good craftsmen is therefore very high. Despite rising lumber prices, that demand continues to grow. In general, therefore, growth is expected, especially in the lumber and construction industry.
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 and installation technology sector, which includes a carpentry 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 start-ups in the industry every year, which also makes many businesses with only one person working visible. The construction industry is under pressure, which is also visible in the numbers.
In figures, the number of carpentry 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 carpentry companies many growth and acquisition opportunities:
Wood is increasingly central to the construction industry. Consumers know the route to the lumberyard or lumber dealer more often. Apart from the advantages for carpentry companies, it is also a raw material with quite an impact. Wood increases atmosphere, value and is a nitrogen trap.
Rabobank is betting high on industrialization within the construction industry, because it is expected that soon all new homes will consist of construction kits. Existing residential buildings can also be upgraded to sustainable living spaces, which means carpenters will fade more into the background and have to focus on other work.
On the other hand, consumers are increasingly investing in an attractive living and working environment, so there is more demand for the arts of carpentry. In this regard, wood is an obvious option, due to the desire for sustainable, circular and low-cost construction.
