You want to sell your leather industry business? Then it's good to know what the takeover market in the field of leather industry companies looks like.
The number of leather industry companies in the Netherlands is very small, because over the years this industry has moved to other parts of the world with an attractive business climate. As a result, the number of mergers and acquisitions is also minimal.
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 the industry & manufacturing sector - which includes leather industry companies - an indicative range of EBITDA multiple 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).
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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.
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There are many self-employed people in this sector, and therefore the number of businesses with one person working is relatively high.
In figures, the number of leather industry companies 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 over the next few years, but also offer leather industry companies many growth and acquisition opportunities:
Leather is a by-product of the meat industry. And in this industry, the question arises to what extent the production and consumption of meat stands in the way of creating a sustainable world. Because the meat industry has quite an impact on land use as well as CO2 and nitrogen issues. On the other hand, meat and leather are really seen as luxury products, which increasing prosperity in emerging economies is actually leading to increased demand.
Traditional leather tanning is done with aggressive chemicals, which pose a risk not only to the environment but also to the health of personnel in this industry. Eye, respiratory and skin diseases are common occupational diseases. The leather industry can still make great strides in making the production process more sustainable.
